A person’s net worth is measured as the total of their assets less the total of their liabilities. You cannot measure someone else’s net worth unless they are willing to provide you with their information, but you can measure your own net worth. Your net worth may be positive or negative.
Make a list of all your possessions: home, car, land, bank accounts, stock investments, personal items, jewelry. then assign a fair value to each item. Be realistic. Don’t assign a value you would wish to have for each item. Assign the value you think you could sell it for.
Make another list with all your obligations: home mortgage, care loan, credit card debt, what you own on your phone, electric and other bills currently. Add up the first list and the second list separately. Deduct the total of your debts from the total of your assets. The result is your net worth. It can be an interesting exercise and the results may surprise you.
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4 Responses to How do you measure an entrepreneur’s networth?
A variety of things including their bank accounts, assets in cash, land, stock, etc.
Total financial assets.
Assets plus liabilities.
A person’s net worth is measured as the total of their assets less the total of their liabilities. You cannot measure someone else’s net worth unless they are willing to provide you with their information, but you can measure your own net worth. Your net worth may be positive or negative.
Make a list of all your possessions: home, car, land, bank accounts, stock investments, personal items, jewelry. then assign a fair value to each item. Be realistic. Don’t assign a value you would wish to have for each item. Assign the value you think you could sell it for.
Make another list with all your obligations: home mortgage, care loan, credit card debt, what you own on your phone, electric and other bills currently. Add up the first list and the second list separately. Deduct the total of your debts from the total of your assets. The result is your net worth. It can be an interesting exercise and the results may surprise you.