Saturday, March 20, 2010

What is Your Net Worth? From The Simple Dollar

The Simple Dollar (one of the resources in the blog roll) has re-printed links to some of its older articles including one from last year, My Real Net Worth, written by Trent Hamm. Here is an excerpt:

...I’ve always found “net worth” to be a strange way of expressing the idea. To me, the mere sum of one’s assets minus one’s debts is a good financial indicator, but it’s far from what I would call “net worth.”

As I take a look down my list of assets, I see things like our home, our savings and checking account balances, our retirement accounts, and so on.

But are those really all of our assets?

I view our close family and friends as major assets. These people help lift us up through thick and thin. They provide great friendship and social situations when times are good, and are there for encouragement (and more tangible help) when times are bad. Certainly, they’re an asset in our lives.

I look at our health as an asset. We’re all in good health. My wife and I are able to earn money because of our good health....

To put it simply, my real net worth is more than just a sum of financial assets and debts. Compared to the wholeness and beauty of life, one’s financial net worth is just the beginning.

Read the full article on The Simple Dollar.

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