Net Worth Explained: What It Is and Why It Matters

What Is Net Worth and Why Does It Matter?

When it comes to personal finance, “net worth” gets thrown around a lot, but what does it really mean, and why should you care? In this episode of Deeply Invested, Meghan takes a clear, practical approach to explaining net worth and how it can help you take control of your financial journey.

We’ll break down:

• What net worth actually means (and what it’s not).

• Assets vs. liabilities – the “good guys” that build wealth and the debts that weigh it down.

• How to calculate your net worth using real examples like bank accounts, investments, cars, homes, and loans.

• Why net worth matters for setting goals, planning retirement, and making big life decisions.

• What to do if your net worth is negative (hint: it’s not failure—it’s a starting point).

• How to use your net worth as a tool, not a scoreboard, to align your money with your values.

Whether your number is positive, negative, or somewhere in between, tracking net worth helps you measure progress, make smarter choices, and feel empowered on your financial journey.

If you’ve never calculated yours before, Meghan shares simple steps to get started today.

See you next time

Byeeeeeeeee