If you are interested in setting up a business, you should also know that your standing in the corporate world will be weighed in terms of, what is known as Net Worth. In the most simplified way, Net Worth is your Liabilities deducted from your Assets. Steve Sorensen Net Worth analyst has been successfully reading the growth charts of various reputed companies and their net worth so as to be able to get an idea of the outlook of potential growth of those companies.
The net worth of a business is its true measure of wealth, not its working income, as is a common misconception. It is the definition of wealth in general. All that you own when separated from all the debt that you owe is what Net Worth is all about. There are basically two types of Net Worth – Positive and Negative. In order to understand this, you need to imagine that you sell all that you possess and repay all your debts with the money that you get from it. If after repaying your debts, you still have some money left, that means you have a Positive Net Worth and if not that means you have a Negative Net worth.
Now, it is but obvious that no individual would want to have a negative net worth and therefore, they strive to increase their net worth, so that even if they have to pay their dues, they do not end up in the negative zone. There are two ways primarily in which you can increase your net worth:
- Own more assets and
- Reduce your debts.
The latter is however, the smarter way of increasing your net worth, because that would make it possible for you own more things later on. In order to achieve this aim, you could first of all chalk up a debt reduction chart that will help you keep a track of how much of it you have reduced through various endeavors.
Trying to sacrifice the unnecessary expenses is something you can start with, along with making a budget and staying loyal to it. You could save expenses from things that you hardly realize can actually help you do so; such as saving electricity and water; this kind of focus on eco-friendly things is beneficial both for you as well as the environment. You could chose to buy your stationeries from wholesale shops where you will surely get big discounts on big purchases. Trying to bring down your phone bills is yet another easy and simple way in which you can thing of saving your finances in order to be able to pay your debts and thereby increase your net worth.
As they say, little drops of water make the mighty ocean, so can you with your small gestures of savings be able to increase your net worth like the reputed companies like Apple, Samsung. Steve Sorensen Net Worth is also inspired by their success.