Let me start by wishing everyone Merry Christmas!!!
Net worth is easily one of the most important financial numbers one should know. It is like your personal balance sheet.
This is the classic comic where everyone is actually poorer than the beggar who has a net asset of $2.73. Your friend/colleague may be living in a huge condominium, driving some fancy car but it could all be financed by debts. There is absolutely nothing wrong with that as long as their income allows so. You can refer to the following articles/google on the importance of net worth.
InvestmentMoats – Don’t Track Your Expenses or Budget First. Plot Your Net Worth Instead
Google – Importance of Net Worth
Cash This is all the money we have in our savings accounts. We are in the midst of transferring our salary crediting account to DBS Multiplier Account because we go wherever there is higher interest! …