What’s the worth of net worth? When I was younger, I was wondering why so many people, (actually I’ve just heard much of these from my Basic Accounting instructors) make fuss about it. When discussion classes have started about what net worth is about, it was defined as the total value of whatever you own, also known as assets minus what you owe, aka liabilities. From that meaning of net worth I still didn’t care much about it simply because I don’t experience its implications or so I thought. UNTIL…

I entered adulthood and my colleagues, friends, and family start influencing to assess my net worth. I wish I’ve learned about the value of net worth monitoring a lot earlier. I could have tried to be more financially responsible. Why? Seeing figures go up and down excites me. I could have made use that excitement to motivate me, right? Ok, enough of excuse. But it’s better to be late than never right? Anyways, here’s more about net worth.Â

Why calculate your net worth? It will provide a snapshot of your financial stability. How rich are you? How extravagant have you become? What assets do you value? How financially ready are you? Your net worth

How do you calculate your net worth? As from its meaning, you can calculate net worth using this formula:

Assets - Liabilities = Net Worth

Next is what should you put under assets and what should be under liabilities.