[Personal Finance| Accounting| Income Statement| Balance Sheet] Net Worth is a way to measure progress, and to help you foresee trouble before you get buried too deep. Net worth is a concept applicable to individuals and businesses as a key measure of how much an entity is worth. A consistent increase in net worth indicates good financial health; conversely, net worth may be depleted by annual operating losses or a substantial decrease in asset values relative to liabilities.

Input Variables:

A - Assets (reference the notes section to find what is included as an asset)

L- Liabilities (reference the notes section to find what is included as a liability)

Output for the formula:

returns the net worth

Notes

What is included in Net Worth?

Assets include:

• Value of real estate owned (this maybe more than your equity, or the amount you have paid on your property so far)
• Value of personal property worth $500 or more (such as jewelry or a car)
• Bank Accounts
• Savings Bonds
• Investment/Retirement Account

Liabilities include:

• A Mortgage
• Auto Loan Balances
• Student Loan Balances
• Credit Card Debt
• Any Other Money Owed