Many factors can paint a picture of your current financial status, but your net worth is one of the most straightforward figures to see where you stand.

Your net worth is essentially a personal balance sheet, accounting for all of your financial assets and liabilities. To calculate your net worth, you'll first need to add up all your assets -- such as cash savings, your home value, and retirement accounts. Then, subtract your liabilities -- such as student loans, a mortgage, and any other debts.

While your net worth isn't everything, it can help gauge whether you're making financial progress over time. If your net worth decreases consistently, it could be a signal that you're spending more than you're earning -- which could spell trouble for your financial future.

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Source Fool.com