What is an individual's financial health primarily assessed through?

An individual's financial health is primarily assessed through a net worth calculation. This assessment provides a comprehensive view of an individual's financial situation by measuring the difference between total assets and total liabilities. Assets include everything of value that an individual owns, such as properties, savings, and investments, while liabilities encompass debts and obligations like mortgages, loans, or credit card balances.

By calculating net worth, individuals can determine their overall financial stability and make informed decisions about budgeting, saving, and investing. A positive net worth indicates that assets exceed liabilities, suggesting a healthier financial standing, while a negative net worth may highlight financial challenges.

The other options, while important components of financial assessments, do not provide as complete a picture. Investment portfolios focus on specific investments rather than overall financial health. Income statements reflect income and expenses over a particular period but don't present a net financial status, and expense reports track spending but do not account for assets or liabilities. Thus, the net worth calculation serves as the most effective tool for evaluating an individual's financial health.