How Much Are You Worth?

NET WORTH : The value of what is owned minus what is owed.

This is one of the reasons I’m not easily blinded by shiny people especially now that items can easily be “purchased” with credit, which means that you can acquire things you cannot afford.

I’m an advocate for using credit cards because of benefits such as earning points you can later redeem for cash, access to airport lounges, build your credit score, etc. However, I highly oppose this if you cannot guarantee paying off the balance by the due date.

Someone may be driving that nice car or living in that huge house and carrying that beautiful purse.

Does your first impression sound more like “that person must be rich” or “I wonder if she’s liquid (able to turn assets into cash or meet financial obligation)” That’s one of the things I like about finances, there’s more to what our bare eyes see.

What is your net worth? Are you in the red, black or green (loss, even, gain respectively)?