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Wealth
In economics and business, wealth of a person or nation is the value of assets owned net of liabilities owed at a point in time. The assets include those that are tangible (land and capital) and financial (money, bonds, etc.). Wealth may be measured in nominal or real values. Measurable wealth typically excludes intangible or non-marketable assets such as human capital and social capital. In economics, "wealth" corresponds to the accounting term "net worth". What is your net worth? *Net worth = Assets - Liabilities. You can apply this simple equation to your finances and you will know your result. Positive or negative net worth? Good, if you are positive but that doesn't mean it is bad to be negative. Upcoming posts will show you how to get to the positive and achieve financial freedom. |
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