A “net worth example” is an illustration of how to compute one’s net worth. Determining net worth involves subtracting total liabilities from total assets. An individual with $100,000 in assets and $50,000 in liabilities has a net worth of $50,000.
Calculating net worth is crucial for managing personal finances, assessing financial health, and making informed investment decisions. Historically, net worth has served as a key metric in wealth management and financial planning.