How is net worth of a person calculated?

[Good-Person]

There are many rich people out there and you may be aware of the fact that they have a specific "net worth" of their own. So, how is the total net worth of a particular person calculated in an accurate manner? Does this also involve the liabilities as well?

 

[Frank]

The assets are the things that I know that are being put into consideration when calculating the net worth of a person. This is because the liabilities must have been removed from the assets to get the net assets. So, doing this calculation is very important to understanding how much someone is worth.

 

[Good-Person]

The assets are the things that I know that are being put into consideration when calculating the net worth of a person. This is because the liabilities must have been removed from the assets to get the net assets. So, doing this calculation is very important to understanding how much someone is worth.

I think that liabilities are also taken into account. Moreover, we must also consider taxation money a person owes. This is also quite important. When we deduct income tax, we can calculate the net income of a person in the best manner.

 

[Heatman]

Your net worth is arrived at when both your financial and non-financial assests have been arrived at after removing all the liabilities you're meant to pay, the worth that's left after is what's called your net worth. It's pretty simple, all your money in the world minus all your expenses.

 

[Kane]

You will have to calculate the total value of your possessions, which include your house, car, money you have, shares you have, assets, and even your TV and fridge. Now you will also have to calculate the total value of your obligations, for instance, un paid bills, loan, debt, etc. When you subtract your assets with liabilities the remaining value will be your net worth.

 

[Good-Person]

Your net worth is arrived at when both your financial and non-financial assests have been arrived at after removing all the liabilities you're meant to pay, the worth that's left after is what's called your net worth. It's pretty simple, all your money in the world minus all your expenses.

I think that there is a concept called personal income and it actually differs from personal disposable income. The personal disposable income is the actual net worth of a person if we are talking about the actual value of a person. This is why liabilities play a major role when it comes to calculating the net worth of a person.