In 2022, who in this world hasn't heard about Apple and its unique technology? This company brews trillions of dollars annually, they are one of the wealthiest and profitable businesses across the world. Apple net worth as of October 13, 2022 is $2233.51B. Net Worth, is our subject this week and it will be worth reading.
You want to know more about NET WORTH? Go through our article to learn more about it.
Understand your net worth?
It's fairly easy to find out the net worth of some of the world's wealthiest celebrities (whether that information is accurate, is another matter altogether), but how much do you know about your own net worth? And why would you even need to know that?
Net worth can be calculated by subtracting all of a person's debts and liabilities from their total assets. It's the combined value of all your stuff with all the money you owe others subtracted out.
Total Assets – Total Liabilities = Net Worth
It might happen that you get a negative net worth result (which is not the worst thing in the world) no need to panic or to give up. No matter your business net worth, Silver Bridges is here to help you.
Understand your assets?
If it is worth money, or it will be worth money one day, it is an asset. Some common examples:
Cash - physical currency, digital currency, checking accounts, savings accounts, certificates of deposit, etc.
Investments - retirement funds, stocks, pensions, bonds, mutual funds, etc.
Property - land, houses, cars, boats, etc.
Valuables - jewelry, collectibles, art, furniture, etc.
If you can spend it, cash it out, or sell it today (or tomorrow), and get money back from it; it is an asset.
Understand your liabilities?
Your liabilities are essentially what you owe to others. Examples include:
Creditor debt
Mortgage debt
Student loan debt
Taxes owed
Business debt (if you own your own business)
Outstanding bills
Ideally, your assets should outweigh your liabilities, but that may not always be the case. If you owe a lot in student debts, for example, you may have more liabilities than assets, but that should shift with time.
When do you need to know your net worth?
On a day-to-day basis, your net worth probably does not mean all too much. As long as you can cover your expenses and sock away a little for savings, you are probably doing okay.
Over time, however, net worth can be a useful barometer of your financial progress. While we do not all strive to be rich (nor should we), you do ultimately want the needle pointing up. If your liabilities outweigh your assets and that trend is steadily pointing down instead of up, you may need help figuring out how to adjust your strategy.
If ever, after executing a retrospective of your business pathway, you realize that your assets and net worth are not evolving, this surely means that your business financial situation is unwealthy. You should therefore rethink your financial strategy.
At Silver Bridges, we are here to bring solutions to you, by helping secure the financial health of your business and to mature financially with a strategy that understands the risks.
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