Personal Finance Calculator
We often see cover pages of magazines citing the celebrities with the highest net-worth. We admire the figures quoted and wonder if we could own that much! But what is net-worth after all? Net-worth is the difference between your assets and liabilities.
It is an important metric to understand the financial health of an individual or business. Assets can be defined as economic resources that have revenue generation potential in the form of receivables or cash flows, such as your
investments, home, gold, etc. On the other hand, Liabilities are nothing but your debts or financial obligations, for example, your loans, credit card bills, etc. Positive net-worth indicates net gains and a strong financial position,
whereas a negative net-worth implies net losses and inability to service your debts.
Here is a simple way of calculating your net worth- the net worth calculator!
Personal Finance Calculator
The net worth calculation is easy with the net worth calculator. You just need to plug in the values of your various assets and liabilities, and within seconds, the net-worth calculator will display your results.
Since a net-worth calculator computes your current financial standing, it aids you in making periodic changes to your investment portfolio based on your long-term and short-term financial objectives. Thus, a net-worth calculator is an indispensable tool for both individuals and businesses.
You can also deduce your liquid net worth using a net-worth calculator. Liquid net-worth is the portion of your total net-worth that is easily convertible into cash. Liquid net worth helps you manage your daily cash requirements and set up cash reserves
for immediate liquidity needs or contingencies.
