Net worth is an indicator of financial health. you can read more on how to calculate that here.
It essentially gives you a look into where you are in your finances. However, this is only one of the many tests to check this. These tend to be separated by country, as some rely on a credit system, and others rely on a more cash system. This is neither, it is divided by assets vs. debts. When you add up all of your assets and debts and subtract them from one another, that tells you your net worth.
Assets – Debts = Net Worth
I had been working on this for a while, but I was able to invest more this year than I ever could. For the first time, I felt my ‘little’ income was actually livable. You can read more on my net worth journey here.