The importance of net worth

Net worth is an estimate of the total value of the assets owned by an individual or an entity in general. The total value not only includes the assets but all the liabilities too. While the assets mean all that a person or business may own, the liabilities mean loans or mortgages that may be applied on the assets. It is important to count liabilities because liabilities give more clear and natural picture of the assets and they make them more reliable. The net worth is published every year and the impact of the liabilities is checked on the assets. The increasing assets or net worth mean a positive relationship while the declining number and figures indicate a negative relationship between the assets and liabilities. The net worth measurement is very important in capitalist economies where most of the times the economy is solely investment driven! Click here to know more about #http://celebritynetworths.org.