ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Net worth is the total value of all assets minus any liabilities. Put simply, net worth is what you own minus what you owe. Calculating net worth can be a helpful way to determine one’s wealth and the overall health of a person’s or company’s financial situation.

Detailed explanation-2: -To calculate your net worth, you subtract your total liabilities from your total assets. Total assets will include your investments, savings, cash deposits, and any equity that you have in a home, car, or other similar assets. Total liabilities would include any debt, such as student loans and credit card debt.

Detailed explanation-3: -Net worth is assets minus liabilities. Or, you can think of net worth as everything you own less all that you owe.

Detailed explanation-4: -Start with what you own: cash, retirement accounts, investment accounts, cars, real estate and anything else that you could sell for cash. Then subtract what you owe: credit card debt, student loans, mortgages, auto loans and anything else you owe money on. Then boom-you’ve got your net worth.

Detailed explanation-5: -In simple terms, net worth is the difference between your assets and your liabilities. Assets are all the things you own such as a house, investments accounts, cars. Liabilities being all the things you owe, such as a mortgage, credit cards, student loans, etc.