Your personal balance sheet
Net worth is the single number that answers "where do I actually stand?". It is everything you own minus everything you owe. Income tells you what flows through your hands; net worth tells you what stuck. That is why it is the figure worth tracking over the years — a raise only shows up here if some of it survives the month.
How to fill it in
List your assets at their current market value — bank balances, investments and pensions at today's prices, property and vehicles at what a buyer would pay now. Then list your liabilities at their outstanding balance, not the original amount borrowed: mortgage, car finance, student loans, credit card balances, and anything owed to family. Net worth = total assets − total liabilities. Add or remove rows to match your own situation, and download the CSV to keep a dated snapshot you can compare against next time.
Reading the result
Look at three things. First the sign: positive means your assets cover your debts. Second the mix — assets tied up in property and pensions are real, but they are not money you can reach this month, so keep an eye on liquid savings separately. Third, and most important, the trend: one snapshot is a data point, four snapshots are a direction. Paying down a high-interest balance and adding to savings both move this number, and the fastest gains usually come from clearing expensive debt first.