Net Worth – What Is It And Why It Is Important?

Net worth – what is it exactly? A lot of us would wonder what this is and why it matters.

Your net worth is the amount of money you have when you minus all of your liabilities from your assets. It is the difference of what you own between what you owe. If you are able to calculate this and your assets surpass your liabilities, this would mean that your net worth is on the positive. On the other hand, if your assets are lower than your liabilities, your net worth is on the negative. The higher your net worth, the greater your value is on paper. While many have an average net worth, there are those who have high-net-worth and those who have ultra-high-net-worth. Check out https://pillarwm.com/why-it-matters-ultra-high-net-worth-or-high-net-worth/ to know more about this.

Positive Net Worth And Negative Net Worth – What It Means

Knowing your net worth matters as it can reveal a lot of things. A negative figure would mean that you owe more than what you own and a positive figure means you own more than what you owe which is a good thing. However, having a negative net worth doesn’t automatically signify that you are careless or irresponsible when it comes to your finances. It simply indicates that, at present, you have more liabilities compared to assets.

Your net worth, similar to the stock market, can fluctuate. But, similar to the stock market as well, the overall trend is what’s vital. Ideally or if at all possible, your net worth should continue to increase as you grow older since you should’ve paid off some of your debts, build home equity, obtain more valuable assets and more. It is typical for your net worth to drop at one point as you start to dip into your investments as well as your savings for your retirement.

Why Is Net Worth Significant

We all have different financial goals as we have varied financial circumstances. Because of this, it isn’t easy to determine and set a standard net worth that would be true to all. Rather, you will need to establish your own net worth, both in the short and long term. 

With a positive and high-enough net worth, you will most likely have the capability to obtain more assets. As you acquire more assets, you carry on to grow your net worth. This is one major reason why the wealthy keep getting wealthier as they have high-net-worth as well as the needed liquidity to obtain more assets.

In the end, it is always wise to strive to grow your net worth since a high enough net worth will definitely aid you in reaching not only your financial goals but your life goals as well. Visit https://pillarwm.com/why-it-matters-ultra-high-net-worth-or-high-net-worth/ to learn more.

Visa Announces Plan to Rollout Cryptocurrency Platform by Year End

Visa, the credit card company formerly seen as an enemy of the crypto industry has made a turnabout by becoming a new major supporter of the bitcoin community, This leading credit card company has recently announced plans of releasing a crypto software program by the end of the year. Moreover, banks will be involved in supporting Visa’s cryptocurrency trading and buying services.

Anchorage, a leading digital asset custodian, has in fact become the first digital asset bank in the U.S. The recognition came after the U.S Office of the Comptroller of the Currency (OCC) awarded Anchorage, a national trust charter. Anchorage is one of several banks that will provide storage services for Visa cryptocurrency users.

 What Has Been Causing the Bitcoin Boom?

Bitcoin’s value recently rose to a record high $46,000 as robust trading continues to propel bitcoin into the mainstream of the global financial market. Paid endorsements from celebrities like Lindsay Lohan helped boost trading, while the more conventional Wall Street investors began taking interest in bitcoin investments.

The BTC boom is also attributed to Paypal’s rollout of a  platform that allows millions of Paypal users to use bitcoin and other cryptocurrencies in completing online transactions. Paypal by the way is a one of Visa’s strongest rivals.

The latest spike occurred last week, after Tesla’s and SpaceX’s CEO Elon Musk made mention of Tesla’s $1.5 billion investment in bitcoin.