Net Worth is a Useless Metric

First, the basic definition. ‘Net worth’ is the amount by which assets exceed liabilities. While the term has value and meaning for businesses, it is largely a useless metric for individual families. Why? Because two ‘assets’ that people love to include in their calculation of net worth are their homes (I’m referring to primary residences and not rental or investment properties) and automobiles.  And for too many people the value they assign to their home and automobile(s) form a significant amount of their net worth. As an example, you might Read the Full Story