What does it actually mean to calculate "net worth"? In this episode, we break down the fundamental formula of financial health: measuring total assets against outstanding liabilities. While often associated with personal finance, we explore how this concept applies to four distinct categories:

• The Calculation: We explain how net worth is derived by subtracting financial obligations (like loans and mortgages) from assets (such as homes, vehicles, and stocks).
• For Individuals: Learn why net worth is a snapshot of your net economic position. We discuss why tangible assets like retirement accounts are included, while intangible assets—such as educational degrees—are generally excluded from the calculation.
• For Companies: Discover why business net worth is often called "equ ...