Wednesday, September 22, 2021
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Net Worth

To calculate net worth, one should minus all the liabilities. True net worth of an individual or a corporate will only be revealed once you add up  the  value of assets. Calculating net worth is one of the most potent methods to gauge a company’s financial health.

What is Net worth in simple words?

  • Net is a concept that comes handy while measuring the value of an entity. If you know the method of calculating net worth, you can know what an individual, sector, corporate and countries are worth, financially.
  • Net worth reveals the true financial position.
  • In business language, net worth is mentioned as shareholder’ equity or book value.
  • Individuals with a great deal of net worth are known as high net worth individuals (HNWI).
  • Net worth is what is owned by the entity minus what is owed.

I want to calculate net worth, what’s the easiest way to do it?

You can calculate your net worth in Bankrate

However, you should know the value of your assets, and your liabilities. 

What are my assets and liabilities?

Your assets are home, real estate, jewellery, savings, retirement accounts, stocks, mutual funds, cash, etc. In other words, enter whatever gives you money in the long term. And your liabilities are, home loans, vehicle loans, etc. Calculate whatever takes money from you in the long term.

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