Personal Finance
Net Worth
Definition
What is Net Worth?
Total assetsThe sum of resources controlled by an entity that are expected to provide economic benefits. minus total liabilitiesAll present obligations owed by an entity..
Example in practice
How This Looks in Practice
Assets of ₦25 million less debts of ₦7 million give ₦18 million net worth.
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Related Terms
Personal Finance
Savings
Money set aside rather than spent, often for emergencies or future goals.
Personal FinanceEmergency Fund
Liquid savings reserved for unexpected expenses or income disruption.
Personal FinanceSavings Rate
The percentage of income saved or invested during a period.
Retirement InvestingWithdrawal Rate
Annual portfolio withdrawals divided by the portfolio's starting or current value.