An important step to measure your financial health is to figure out your net worth. Your net worth gives you a snapshot of where you stand financially. It will give you an exact figure of how much money you have or how much money you owe. Your net worth is the difference between your total assets and total liabilities.
Assets are cash and other property with monetary value.
Liabilities are the debts that you owe to others. To determine your net worth, you need to first calculate your assets and then your liabilities. To calculate your assets, you first need to look at your liquid assets. Liquid assets are assets that can be turned into cash, or liquidated immediately. Liquid assets include your checking account balance, your savings and money market account balances, cash value life insurance, and any other asset that has the same value as cash.