Accounts & Net Worth
What you own, what you owe, and the arithmetic that connects them.
- Net Worth
- Everything you own minus everything you owe.
- Assets vs Liabilities
- What you own on one side, what you owe on the other, and net worth as the difference.
- Liquidity
- How quickly an asset becomes spendable cash, and what it costs you to hurry.
- Debt-to-Asset Ratio
- The share of what you own that is financed by someone else.
- Good Debt vs Bad Debt
- Whether borrowing leaves you better off comes down to the rate and to what the money bought.
- Debt Avalanche vs Snowball
- Two orderings for paying down several debts at once: highest rate first, or smallest balance first.
- APR (Annual Percentage Rate)
- The annualized cost of borrowing, including the fees a headline rate leaves out.
- Compound Interest
- Growth that earns on prior growth, which is why the holding period matters more than the rate.
- Inflation
- The rate at which a dollar loses purchasing power.
- Net Income
- What reaches your account after tax, benefits and retirement contributions come out.
This content is educational and informational only. It is not financial, investment, or tax advice. Consult a qualified professional before making financial decisions.