Net Worth: Calculating Your Financial Health
Introduction: Understanding your net worth is critical for analysing your financial health and planning for the future. In this blog article, we will look at how net worth is determined, assets and liabilities, and give you with a simple yet thorough way to determining your financial well-being. Image Courtesy: https://corporatefinanceinstitute.com/resources/valuation/net-worth/ What is Net Worth? The difference between your assets and liabilities is represented as your net worth. It provides a glimpse of your total financial situation and allows you to track your progress towards achieving your financial objectives. Calculating Net Worth To determine your net worth, sum the total value of your assets and remove your liabilities. Your net worth is reflected in the resulting value. Let's take a closer look at the components of assets and liabilities. Image Courtesy: https://www.nerdwallet.com/article/finance/net-worth-calculator Assets Anything you own that has monetary value is co...