What Is Your Net Worth?

What I find interesting is that many people pay attention to the wrong things in life. It really does not matter how many friends you have or how many likes you have. What matters most is the amount of money you have in the bank, how much your investments are worth, and how deep into your pockets do your bills cut.

It appears that the young people today have lost focus on what is of real value. All the likes, friends and love in the world will not give you financial freedom. That only comes from building your financial wealth and gaining a clear understanding of Net Worth.

Net Worth as defined by Wikipedia:

For Corporate:

Net worth in business is generally based on the value of all assets and liabilities at the carrying value which is the value as expressed on the financial statements. To the extent items on the balance sheet do not express their true (market) value, the net worth will also be inaccurate. On reading the balance sheet, if the accumulated losses exceed the shareholder’s equity, it is a negative value for net worth.

For a company, this is called shareholders’ preference and may be referred to as book value. Net worth is stated as at a particular year in time.

Net worth in this formulation is not an expression of the market value of the firm: the firm may be worth more (or less) if sold as a going concern.

In short:

Because I love it when we make something simple hard to understand. I need to express everything like I am talking to a 6-year-old.

Add up the value of all items you have in stock, add up all projected income, (adding a comparable value to everything that you are not selling) add in all investment income, subtract your total bills, and that’s your business net worth.

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For Individuals

For individuals net worth or wealth, refers to an individual’s net economic position; similarly, it uses the value of all assets (long term assets) minus the value of all liabilities.

In Short

add up everything you own, subtract all bills…that’s what you are worth today!

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To help you in figuring out right where you stand I am giving you a way for you to keep track and gage your own personal net worth. It’s called, “The Net Worth Calculator“.

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About Mastering You

"Mastering You" is about helping African American's to see their value in this world. I post only positive stories and information about what African American's have contributed to society in the past and currently. I don't post anything about Sports, Entertainment, Religion, or Politics. I also don't post anything that has a negative spin. While I am aware that there are negative things happening all over the world and that most people focus on the above four topics when it comes to African American's that is not my goal. If all you heard was negativity about any race that's all you will come to expect from them and everything else will be out of the norm. My goal is to show everyone that the negativity is often out of the norm, or at best they are equal to the positive. Just like every other race.
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