What does an increase in a person's net worth indicate?

An increase in a person's net worth indicates improved financial health because it reflects the difference between what they own (assets) and what they owe (liabilities). When net worth rises, it typically means that assets such as savings, investments, or property have increased in value or that debts have been reduced. This positive change suggests that the individual is building wealth, managing their finances effectively, and likely moving toward financial stability. Improved net worth signals a stronger position for future financial decisions and opportunities, as it indicates the individual has more resources available for investments, potential emergencies, or retirement funds.