Net Worth is sometimes presented as a complicated concept whereas it is really very easy to understand and calculate.
Your Net Worth is nothing more than the total of all your assets minus the total of all your liabilities. See What are Assets? and What are Liabilities? for a description of each of those topics.
In the Money Action Plan system, your Net Worth is used as a measurement to determine if you are making any progress on your Money Action Plan.
The goal is to increase your Net Worth at a steady pace over the course of your life. There may be months when the Net Worth actually goes down because of events in your life that impact your assets or your liabilities disproportionately. A temporary decline is nothing to worry about as long as you can identify the cause and know that you will be able to get your plan back on course.