Definition of Net Worth
What does the term "net worth" mean? What is the definition of "net worth"?
For this dictionary entry, we will be using the term "net worth" to talk about an individual person's net worth. If we were talking about a company, then we would use the term "shareholder's equity".
Anyways, back to "net worth".
To figure out your net worth, simply perform this calculation:
Total Assets (Including Cash)
Total Liabilities (Mortgages, Loans, etc.)
Total assets would include the current value of your home, car, etc., as well as other assets such as stocks, bonds, cash, 401k money, vacation properties, etc.
Total liabilities would include things such as your mortgage, student loans, car loans, credit card debt, etc.
Subtract your total assets by your total liabilities and you are left with your net worth.
If your total liabilities are higher than your total assets, then you are said to have a "negative net worth".
Davemanuel.com Articles That Mention Net Worth:
Jeff Bezos Breaks Into The Top 10 List of the World's Richest People
Report: Google Very Nearly Purchased Tesla in 2013
Forbes: Global Billionaire Count Up To 1,826
Billionaire Bonanza: Report Claims That There Are 2,089 Billionaires In The World
Report: Congress Finished 2013 With A Median Net Worth of $1.03 Million