Net Worth

Not Reviewed
Equation / Last modified by Administrator on 2016/08/06 14:00
`"Net Worth" = `
Rating
ID
Megan.Net Worth
UUID
16e980b5-fcb2-11e3-b7aa-bc764e2038f2

[Personal Finance| Accounting| Income Statement| Balance Sheet] Net Worth is a way to measure progress, and to help you foresee trouble before you get buried too deep. Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. A consistent increase in net worth indicates good financial health; conversely, net worth may be depleted by annual operating losses or a substantial decrease in asset values relative to liabilities.

Input Variables:

A - Assets (reference the notes section to find what is included as an asset)

L- Liabilities (reference the notes section to find what is included as a liability)

 

Output for the formula:

returns the net worth

 

NetWorth-illustration.png

Notes

What is included in Net Worth?

Assets include:

  • Value of real estate owned (this maybe more than your equity, or the amount you have paid on your property so far)
  • Value of personal property worth $500 or more (such as jewelry or a car)
  • Bank Accounts
  • Savings Bonds
  • Investment/Retirement Account

Liabilities include:

  • A Mortgage
  • Auto Loan Balances
  • Student Loan Balances
  • Credit Card Debt
  • Any Other Money Owed