Net Worth

What is Net Worth & How to Calculate?

Net WorthNet worth can be a useful tool to measure individual financial progress. It can be determined by subtracting total liabilities from total assets at a specific time. If assets is more than liabilities, individual will have a positive net worth. If otherwise, it will be negative wet worth.

The goal is to work towards a positive net worth. This indicates debt-free status or capability to pay all debt.

It doesn’t offer information about cash flow, or monthly income and expenses. However, it does provide insight regarding how well you’re accomplishing your long-term financial goals.

Calculate Net Worth

To calculate net worth, the first thing to do is to list up all assets and liabilities.

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