Net Worth

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What is Net Worth?

Back

Net Worth is the difference between what you own (assets) and what you owe (liabilities). It represents your financial position.

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What are Assets?

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Assets are items of value that you own, such as cash, property, jewelry, and investments.

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What are Liabilities?

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Liabilities are debts or obligations that you owe to others, such as loans, mortgages, and credit card bills.

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How do you calculate Net Worth?

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Net Worth = Total Assets - Total Liabilities.

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What is an example of an asset?

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An example of an asset is jewelry, real estate, or savings accounts.

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What is an example of a liability?

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An example of a liability is a mortgage, student loan, or credit card debt.

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What does it mean if someone has a negative Net Worth?

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A negative Net Worth means that a person's liabilities exceed their assets, indicating financial distress.

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What is the total value of assets if you have $10,000 in cash and $15,000 in property?

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Total Assets = $10,000 (cash) + $15,000 (property) = $25,000.

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What are Bills considered in financial terms?

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Bills are considered liabilities because they represent money that you owe.

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If you have $50,000 in assets and $30,000 in liabilities, what is your Net Worth?

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Net Worth = $50,000 (assets) - $30,000 (liabilities) = $20,000.