Origin Dictionary / OD-015
Net Worth
Being worth a million does not mean you can spend a million.
01Dictionary Meaning
Net worth is the value of what a person or organization owns minus what it owes at a given time.
02What People Think
"That is how much money I have."
03What’s Underneath
A home, private business and retirement account can all contribute to net worth. They do not all turn into cash on demand.
Values can also be estimates. A business valuation is not a standing offer from a buyer, and a house price can change before a sale closes.
Net worth is useful because it includes both assets and debts. It still needs a companion question: what income arrives, what payments are due, and which assets can actually cover them?
04The Game
How much of the total is accessible, how much is estimated, and how much depends on one asset retaining its value?
05One Line
Net worth is a snapshot of ownership, not a spending limit.
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M1Youth Finance
Read the difference between wealth and available cash.