by Ben
Some people think that
Net worth is how much money you have but Net worth is the amount by which
assets exceed liabilities. Net worth is a concept applicable to individuals and
businesses as a key measure of how much an entity is worth. How do you figure
out your Own Net worth? It takes three steps, first list what you own and
estimate the value and add up the total, second list what you owe and add up
the total and finally subtract what you owe from what you own and find out your
personal net worth. For example a famous person such as Morgan Freeman who has
many assets Net worth is two hundred million USD. According to CNN money “the
average net worth for the following ages are: $9,000 for ages 25-34, $52,000
for ages 35-44, $100,000 for ages 45-54, $180,000 for ages 55-64, and $232,000+
for 65+.” That just shows that a stars net worth is much more than the average
person. It is important to know your Net worth because if your liabilities
exceed your assets then you have negative net worth and it’s important to keep
track of it to keep it in the positives. Your Net Worth is like a snapshot of
your financial situation at the current time.
