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  2. How to calculate your net worth —and why your net worth ...

    www.aol.com/article/finance/2017/03/15/how-to...

    To move the needle on your net worth, you need either to grow your assets, reduce your debt or both. The easiest way to grow your assets is by setting 15% of your income into a retirement account ...

  3. How healthy are your finances, really? 4 money questions to ...

    www.aol.com/financial-questions-to-ask-yourself...

    Add up your total assets. Add up your total liabilities. Subtract your assets from your liabilities. Say you have a total of $800,000 in assets and $300,000 in liabilities. Your net worth would be ...

  4. How strong are your finances, really? Part two: 4 more money ...

    www.aol.com/finance/more-financial-questions-to...

    One relatively quick way to do this is to calculate your net-worth-to-total-assets ratio. You can calculate this ratio by adding up the value of your investments ( not including your home equity ...

  5. Accounting equation - Wikipedia

    en.wikipedia.org/wiki/Accounting_equation

    The fundamental components of the accounting equation include the calculation of both company holdings and company debts; thus, it allows owners to gauge the total value of a firm's assets. However, due to the fact that accounting is kept on a historical basis, the equity is typically not the net worth of the organization.

  6. Net worth - Wikipedia

    en.wikipedia.org/wiki/Net_worth

    Net worth is the excess of assets over liabilities. The assets that contribute to net worth can include homes, vehicles, various types of bank accounts, money market accounts, stocks and bonds. [3] The liabilities are financial obligations such as loans, mortgages, and accounts payable (AP) that deplete resources.

  7. Depreciation - Wikipedia

    en.wikipedia.org/wiki/Depreciation

    Example: If an asset has original cost of $1000, a useful life of 5 years and a salvage value of $100, compute its depreciation schedule. First, determine the years' digits. Since the asset has a useful life of 5 years, the years' digits are: 5, 4, 3, 2, and 1. Next, calculate the sum of the digits: 5+4+3+2+1=15

  8. Learn what assets are, the different types you can own and how they impact your financial growth.

  9. Residual value - Wikipedia

    en.wikipedia.org/wiki/Residual_value

    In accounting, the residual value could be defined as an estimated amount that an entity can obtain when disposing of an asset after its useful life has ended. When doing this, the estimated costs of disposing of the asset should be deducted. [5] The formula to calculate the residual value can be seen with the next example as follows: