A net worth statement is a financial tool that shows your financial position at a given point in time. It is like a “financial snapshot” that shows the dollar value of what you own and what you owe. This relationship can be stated as: Assets – Liabilities = Net Worth.
What does a net worth statement tell you? Obviously, if liabilities exceed the value of assets (negative net worth), you need to take corrective action immediately. However, even a person …