If "net worth" refers to the amount of money you have (total), how does your budget measure it?

The amount of money you have in your savings account.
The amount of money you have in all of your accounts combined.
The amount of money leftover after you've created a budget and allocated funds.
The cost of a fishing net.

1 answer

"Net worth" is typically calculated as the total value of your assets minus your liabilities. In the context of your question, the most relevant option for measuring net worth through a budget would be:

The amount of money you have in all of your accounts combined.

This option reflects the overall financial position before considering any debts or obligations. The other options do not directly relate to the concept of net worth as defined in personal finance.