Understanding your net worth is one of the most important steps you can take on your financial journey. Despite how crucial it is, many people tend to overlook this key metric, often focusing solely on income or savings. But knowing your net worth gives you a full snapshot of your financial health and helps you make smarter money decisions.

Introduction

Shopping can be an experience that could give you mixed feelings. You feel the thrill of buying a shiny new item that you have always wanted when you click the "buy" button. But within a few moments or minutes, days or maybe weeks, this feeling gets replaced by guilt, frustration when you finally look at your bank balance.