Celebrity Net Worth - What Is It Exactly?
Every year, usually as it draws to a close, we hear or read about celebrities being featured in various media for their net worth. Of course, we already know these people are wealthy, but what is the significance of reporting their net worth? And what is celebrity net worth exactly?
All of us, not just celebrities, have our own net worth. In general, this is an amount that represents how much we have left if all our liabilities were deducted from all our assets. For example, if your total assets -house, car, farm, etc. - amount to $X and your total liabilities -mortgage, credit card balance, auto loan, etc. - amount to $Y, then your net worth would be equal to $X - $Y.
The same formula is used to calculate the net worth of celebrities like Bill Gates, Mark Zuckerberg, Angelina Jolie, George Clooney, and so on and so forth. So when you read articles on celebrity net worth, this is exactly what they mean. Essentially, this figure tells you how rich these famous people are, and of course, we shouldn't be surprised. They've always looked like they could buy an entire first world country with their savings account, and they know it. You can read more on justrichest!
As for regular folks like us, the topic of net worth isn't really that interesting. It can even be unsettling sometimes. Some of us have zero net worth and others even negative. So if celebrities can use their net worth to gain more fame, what can our net worth do for us?
For one, knowledge of our net worth can make our financial reality clearer to us. Some people spend like the world is about to end, never realizing it's their spending that's making their world end. Knowing your net worth keeps you in check. It gives you a clear idea of your financial status, and it tells you what kind of financial plans you should be having, both short-term and long term.
Again, if you're as rich as those celebrities, then it shouldn't be an issue. Otherwise, it's always a good idea to calculate your net worth every now and then. Some do it twice a year just to make sure their figures are accurate. Fortunately, the formula is very simple as we mentioned above. No need for special math skills. No need to hire a professional even. As long as you know your assets and liabilities, it all boils down to a simple add and subtract operation. You may click here to get started!
