I have a theory which is actually pretty simple, but it does a lot to explain self-worth. It is best expressed with a picture like this:
Essentially, how much you like yourself is the overlap between who you are (or who you think you are) and who you want to be.
I have also found a strong correlation between self-worth and happiness, mostly in myself. My two little circles happen to be almost completely covering one another, which results in me thinking i'm absolutely great! Naturally, there still are a few parts that stick out here and there (I'm working on them) but all in all my self-worth is really high.
Sometimes I have problems because my high self-esteem makes me somewhat arrogant. This is a side of myself I try not to let loose. This is a daily struggle not to let confidence overwhelm modesty.
I figured this entire thing out and wrote this post quite awhile ago, but didn't get around to posting it until now. I remembered it now because my Mom was "attending" Oprah's Webinar this evening. While intermittently listening to what Oprah and Eckhart Tolle (the author of The Power of Now and A New Earth) had to say about people and simple living, I learned a lot about how society brings us up to judge things and label them .It is all slightly related to this post, but not really. Still, it is very intriguing, so head over to Oprah's Book Club to check it out if you're in the mood for some enlightenment.