What your net worth statement is telling you
By Amy Arnott of Morningstar
A summary of all your assets and liabilities is a crucial first step toward getting a better handle on your finances. Before you start putting together a net worth spreadsheet, gather as much information as you can to get the best sense of what it can tell you.
Overall net worth (assets minus liabilities)
The ultimate insight from a net worth statement is exactly what it says: the net worth number, which is simply assets minus liabilities. The number in isolation doesn’t tell you too much, but it is a useful benchmark to track over time. A negative net worth figure would obviously indicate room for improvement.
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