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FutureStarrToni Braxton Net Worth
Net worth in business is also referred to as equity. It is generally based on the value of all assets and liabilities at the carrying value which is the value as expressed on the financial statements. To the extent items on the balance sheet do not express their true (market) value, the net worth will also be inaccurate. On reading the balance sheet, if the accumulated losses exceed the shareholder's equity, net worth becomes negative.
For individuals, net worth or wealth refers to an individual's net economic position: the value of the individual's assets minus liabilities. Examples of assets that an individual would factor into their net worth include retirement accounts, other investments, home(s), and vehicles. Liabilities include both secured debt (such as a home mortgage) and unsecured debt (such as consumer debt or personal loans). Typically intangible assets such as educational degrees are not factored into net worth, even though such assets positively contribute to one's overall financial position.Balance sheets that include all assets and liabilities can also be constructed for governments. Compared with government debt, a government's net worth is an alternative measure of the government's financial strength. Most governments utilize an accrual-based accounting system in order to provide a transparent picture of government operational costs.
The average net worth of all American families was $746,820, as of 2019, according to the Federal Reserve. If this amount seems somewhat disconnected from your financial reality, that’s because average measures of things like net worth can be distorted by a small number of people with gigantic personal fortunes. A median measure is more realistic. The Fed found that the median net worth of all Americans in 2019 was $121,760. You might believe that a person earning a high salary is better off financially than someone who makes a relatively modest one. But the better comparison would be each person’s net worth. After all, a high salaried individual might have greater debts that actually gave them a lesser net worth than someone with less means who uses what they have more judiciously. (Source: www.forbes.com)