Net Worth - What is it and what Net Worth amounts constitute wealth..

   Sometimes, I look at a site called 'Celebrity Net Worth'. I have always found it interesting to look at facts and figures. On this site, you can put in the name of a celebrity and the site will list the person's Net Worth.  Net Worth's vary from individual to individual. For example Oprah Winfrey has a Net Worth is 2.9 billion. Warren Buffet's Net Worth is 65.1 billion.

  

    I know that both Oprah Winfrey and Warren Buffet are wealthy. Today we will look at the definition and meaning of Net Worth. We will also look at what Net Worth amounts signify wealth.
According to investorswords.com, Net worth for an individual is the value of a person's assets including cash minus all liabilities.

   An asset by definition (Wikepedia) is an economic resource. It is anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to hold positive value. tangible assets can further be broken down into two areas - current and fixed. Current assets include cash and inventory, while fixed assets include items like equipment and buildings. Intangibles assets include things like stocks, bonds, trademarks and copyrights.

   A liability is something for which one is liable, an obligation, a responsibility or debt. So another way of looking at Net Worth is the amount of things a person owns after they pay their bills. From the definition and breakdowns we have just looked at, it is obvious why knowledge in money  and finance is important. I took some courses in Economics and Accounting in college thou my major was Education. I certainly learned some very important things from those courses.

   One of the most important things I learned was that if a person intends to keep some assets, they must make sure that they equal more than liabilities each day, month or year - depending on how often a person tracks their worth. Now that we have an understanding of the meaning of Net Worth, let us look at Net Worth amounts that equal wealth.

    I think all of us realize that a person with a negative Net Worth is broke. That their liabilities outnumber their assets, but what New Worth amount equals wealth. According to Yahoo Finance.com in an article written in 2012, the average Net Worth of the 1%  or wealthiest
 people in humanity pencils out to be about $16.4 million.

   If that is the case, I think it is safe to say that Oprah Winfrey and Warren Buffet are among the super wealthy. Next time, we will look at some more celebrity Net Worth's.