Sage Cloud: Your Finances, Simplified
Understanding Your Financial Snapshot: A Deep Dive into Your Net Worth What is Net Worth? Imagine your net worth as a personal financial snapshot. It’s a snapshot of your financial health at a specific point in time. It’s like weighing yourself on a scale; the number you see is a summary of your current financial situation. But unlike weight, where the goal is often to decrease the number, with net worth, the aim is typically to increase it. It’s a measure of your financial progress. An intro to Sage Business Cloud Accounting Breaking Down Net Worth Net worth is calculated by subtracting your total liabilities (what you owe) from your total assets (what you own). It’s represented by this simple formula: Net Worth = Total Assets – Total Liabilities Assets: Your Financial Possessions Sage Business Cloud – Accounting: Handling your Year End Assets are everything of value that you own. They can be tangible or intangible. Tangible Assets: These are …