Add up your assets and subtract your liabilities to find your true financial position
Your net worth is the single best snapshot of your financial health. It's simply what you own minus what you owe. Tracking it over time shows your progress toward financial independence.
For FIRE planning, focus on growing your investable net worth (retirement accounts + brokerage accounts) since that's what generates passive income. A paid-off house is great, but it doesn't directly fund your early retirement spending.
