| Helping You Plan for your Future

NetWorth, on a business perspective is the difference between Company Assets and Company Liabilities. For a company, this is called shareholder's preference.

 

Now, if we will apply it to our personal finances, networth is the individual's net economic position. For us to compute a person's individual networth, it's simply Assets (Long Term Assets) minus all Liabilities. And the tool used to measure a person's economic position is Statement of Assets, Liabilities and Networth.