Is it by how much money you make or have in the bank?
2006-09-19 11:58:07 · 7 answers · asked by indrep33 3 in Business & Finance ➔ Personal Finance
Net worth is a balance sheet term. You add together everything you own (assets.) Next subtract everything you owe (liabilities.) What remains is your net worth. Your income is over a certain period of time, everything you receive (revenue) minus everything you spend (expenses.)
2006-09-19 12:25:34 · answer #1 · answered by robertspraguejr 4 · 0⤊ 0⤋
No,
the formula is
Assets minus Liability==net worth
2006-09-20 02:21:02 · answer #2 · answered by Hoa N 6 · 0⤊ 0⤋
Your net worth is all of your assets (so that's money in the bank, plus equity on your house or stocks you have or your possessions), minus all of your debts (like your credit card bill or your mortgage).
Net income is how much money you make, minus your expenses (So if you make 100 dollars a week, but spend 25dollars on the bills, your net income is 75 dollars.)
2006-09-19 19:07:09 · answer #3 · answered by Cookiemobsta 3 · 1⤊ 0⤋
You add up all (ALL) your assets including those things that can be sold for cash and then subtract the total debt including everything. The difference is your net worth. Yeah, it changes every time you spend a buck but what the heck.
2006-09-19 19:38:13 · answer #4 · answered by DelK 7 · 0⤊ 0⤋
Net worth is not how much money you make, it's how much you have saved.
2006-09-20 13:01:58 · answer #5 · answered by Steve R 6 · 0⤊ 0⤋
Add up how much cash you have in the following:
Bank
Investment Funds
add to
property equity
business equity
It's the cash.....girl...cold hard cash or items convertible to cold hard cash. Don't forget to subtract what you owe on the properties!
2006-09-19 19:06:39 · answer #6 · answered by eagleperch 3 · 0⤊ 0⤋
TOTAL ASSETS MINUS LIABILITIES - VERY SIMPLE .
2006-09-19 23:14:31 · answer #7 · answered by Anonymous · 0⤊ 0⤋