Net Worth is defined as all your assets minus all your liabilities. Net Worth is considered by financial planners as the single most important tool in retirement / future planning. Make sure you calculate your Net Worth the right way. It can be calculated as follows:

Step 1: Take the sum of all your bank accounts. Savings and Checking accounts. All the accounts in your ownership should be considered.

Step 2: Take the sum of other Monetary investments which you may have. This includes stocks, mutual funds, bonds and Cash in hand.

Step 3: Take the sum of all the Credit Card payments which has to be made.

Step 4: Consider any other amount (> $50) which you owe someone.

Step 5: Consider any other amount (> $50) which someone owes you.

Step 6: Take the sum of numbers from steps 1, 2 and 5. Take the sum of numbers from steps 3 and 4. Subtract the latter from the former. This is your Total NetWorth.

On frequent basis you should check this and ideally this should be increasing on a month to month basis. This gives a picture of your financial health.