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Net worth is everything you own minus everything you owe.
It is your personal balance sheet in one number. It rises when you save, when your investments grow, and when you pay debt down; it falls when you spend more than you earn or prices drop.
Buying something with a loan does not change net worth: what you own and what you owe rise together.
Net worth is everything you own minus everything you owe.
It is your personal balance sheet in one number. It rises when you save, when your investments grow, and when you pay debt down; it falls when you spend more than you earn or prices drop.
Buying something with a loan does not change net worth: what you own and what you owe rise together.