Equity, adjusted gross income, stocks, bonds, current ratio, operating cash flow, assets, liabilities, net worth -- it's easy to get lost in the jungle of financial terms out there when you're trying to manage finances. Whatever happened to just measuring income and expenses? Well, when you ask yourself "how much am I worth?" it's not just a question of how much money you have in your wallet, or even your bank account, at that moment. It turns out that, depending on how and when you invest, spend or save your money, your worth varies. Liquid assets make up just one special category of your worth. Understanding it will help you get a better idea of your own financial situation.
You Might Also Like
Death and taxes are the two things you can't avoid. Even worse, they'll tax you when you're dead! Take our quiz to test your knowledge of the differences between the two kinds of death taxes: estate tax and inheritance tax.
Cash, credit or debit? You're probably thinking that's not much of a choice since it's all money anyway. That's not exactly true, and you could get burned if you're not careful.