Personal wealth

Personal Wealth

The total value of assets owned by an individual or household minus liabilities, representing net worth and financial position.

For instance, an individual might have personal wealth of $850,000, comprising a $500,000 home (with a $300,000 mortgage), $400,000 in retirement accounts, $150,000 in other investments, $50,000 in cash, and $50,000 in consumer debt.

Personal wealth includes tangible assets like real estate and vehicles, financial assets such as cash, investments, and retirement accounts, and intangible assets like intellectual property, minus all debts and obligations. It serves as a measure of financial health, security, and progress toward long-term financial goals.