Understanding Company Benefits
And why it matters
Net worth is the most important financial statistic. Do you know what you are worth?
Net worth is asses (what you own, savings) minus liabilities (what you owe, debt)
This provides a snapshot of your overall financial health and important to track over time to make sure that you are trending in the right direction. Net worth isn't about your income and does not factor into your net worth calculation, rather your net work includes savings, investments, and debts.
Every time you save or spend money, your net worth will change, that's why its important to calculate and keep track of periodically
How to calculate
Add up your assets
This includes: savings, house, car, investments, retirement, properties, etc.
Add up your Liabilities
All debts: remaining mortgage, student loans, credit card debt, car loans, medical debt, etc.
Subtract liabilities from Assets
Then you get your total net worth. This is each to calculate and easy to do from time to time.