Calculating Personal Net Worth:

                Net Worth is the actual financial health of a person or a business. Here we discuss the topic How to calculate the Net Worth of a Person? Before going to the main topic we have to write about the world top business magnates and business organizations CEO personal net worth during the current fiscal year 2017. According to their Net worth Chief Executive Officer of Facebook Mark Zukerberg $69 billion, American Business magnate Bill Gates $90.1 billion, CEO Amazon Jeff Bezos $89.3 billion and American Business magnate Warren Buffett $74.4 billion.

                The Balance Sheet is the balance between our income and our expenditure. That shows us that how a business use his cash and what kind of major and small expenses they made with the use of cash and how much they still has to pay and they owns in terms of assets. A normal person also can calculate his net worth. That is very easy to calculate for an individual he need to maintain his business transaction record and manage them well and calculate his net worth on the basis of this data. He can convert his data in to valuable information. Let we start to calculate a simple person net worth. For that purpose we calculate his all assets and liabilities. Then the calculated figures will further subtract from the from each other the resulted balance amount can be a favorable balance and can be an un-favorable balance means negative balance. But for that purpose we need a uniform pattern to design that personal Net Worth.

Calculating all kind of Assets:

                There are two types of assets one is permanent or fixed assets and the other are current assets. The Personal Net Worth is same as we design the balance sheet of a business company.  That’s the reason like the normal balance sheet we calculate the Fixed assets first than we calculate the current assets.

Calculating all kind of Liabilities:

                The Liabilities will be calculating on the same patterns. The long term liabilities firs then the current liabilities but here we make a difference we calculate the person monthly expenditures before all of them and separate them from all the other liabilities because these expenditures are important to calculate their are links to his life and every month he needs to plan and pay them.

Subtract the Assets from Liabilities:

                The third step is to subtract the total assets from the total liabilities. The resulting amount is the net worth of that person. The Net Worth result can be favorable or can be unfavorable. If the assets are higher than the liabilities the result is consider favorable and if the liabilities are higher than the assets the result is unfavorable. But a person not need to be worry about his negative  when he pays all his dues and bank borrowed loans that change his negative balance in to positive balance.

Negative Net worth:

                Mostly Yong persons have the negative balance in net worth because he/she have low income jobs and due to their further studies they borrowed the loans and the mostly portions of their income went to the others hands means in expenditures.

That’s the way we can calculate our personal net worth. There are many different approaches on the internet available these all are also accurate but I think that the approach I used to calculate there that is easy to understand and easy to manage because the approach here use is very close to the business organizations balance sheet.