What is Net worth:
It is defined as the value which is taken from all the non-financial and the financial assets owned by the institution or an individual. This term applies to governments, economic sectors, different institutions, individuals and entire countries.
How to Calculate the Net worth:
The best and simple way to calculate someone’s net worth is by stating all the financial and non-financial assets that the person owns. Then state the person’s debt or whatever he or she owes. By subtracting the value that person has, or the debt from the value of the assets that the person owns, you can get the net worth of any individual, corporation or country.
This is the simplest way to generate someone’s net worth, if you know about the financial assets, non-financial assets and the liabilities that the person has. These types of things are not public to everyone. There are institutions who are responsible for handling these types of things. These institutions use their own methods and techniques through which they can calculate the net worth. This is why many times you will find different results when you are searching for different celebrities’ net worth. The difference in the results or obtained values is not that much so you can guess the values in the range which you are seeing from various sources.
Earnings and the net worth:
You will see that every year there is a change in the net worth of so many celebrities because of the financial gain they are getting in a single year. There are different business firms which provide the information to the public that which celebrity earns how much in that year. For example, Floyd Mayweather who is a professional boxer and is considered as a celebrity in America earned about $285 million last year. The total net worth of Floyd Mayweather Jr is estimated to be in between $700 million to $1 billion. Another example is of George Clooney who is an American actor. He is at the second spot in the highest earning celebrity by earning $239 million last year. The total net worth estimate of George Clooney is calculated to be around $500 million.
All the financial and non-financial assets are declared to the institutions which are involved in the domain of businesses, financial and non-financial assets, liabilities etc. These institutions do not claim that the obtained values are exact and precise as no one can know the exact number of assets which the person can own. Because, many times people don’t make their assets public whether it is financial or non-financial. Especially in the developing countries there is a thing that many people don’t make their assets public because of the tax policies which are in that country. So, many corporations and organizations have to keep that in mind. Still, the net worth which are shown by the reliable sources are almost to the point so there is nothing wrong with that.