Definition:
Net worth is the difference between the asset (market value of home, car, jewellery, fixed deposits, shares, mutual funds, insurance investments, other savings, etc.) and the liability (home loan, car loan, mortgage loan, credit card outstanding, etc.) of an individual or a company.
Description:
A high net worth relates to good financial strength and ultimately good credit rating of an individual or a company. Similarly a low or negative net worth will relate to a weaker financial strength and a lower credit rating, thus directly affecting the individual’s or the company’s ability to raise funds or loan from the market.
It’s ideally recommended to designate one specific day every month or quarter as your “net worth day.” Where you need to update & analyse your net worth over time. This practice can be used to regularly gauge your financial health and make sure you’re on track to meet your life goals.
Moneyfrog.in online dynamic dashboard gives you an access to your net worth, where you can track & monitor all your assets & life goal at ease.