We hear a lot about wealthy people’s net worth, yet few understand what it actually means, or how it is determined. In this article, you’ll learn how to find someone’s net worth.
What is Net Worth?
Net Worth represents how much wealth a person has, which includes a person’s assets and income, minus his or her debt. Assets can be in many forms, such as shares, property, artwork, automobiles, and so on. In addition, debt can be in many forms, from loans to debt owed on credit cards, etc.
What is Positive and Negative Net Worth?
‘Net worth’ can be either negative or positive. positive net worth indicates liabilities exceed assets, while the negative net worth indicates assets are more than liabilities.
Growing net worth is an indication of good financial health. In contrast, a declining net worth is concerning since it indicates a decline in assets relative to liabilities.
How To Find Someone’s Net Worth
Note – Prior to looking into how to find out someone’s financial status, keep in mind that if you’re going to be looking into their records, you should let them know in advance.
Before you pay for any documents, look up the person’s financial status in the public record. The income of people who previously worked for the government is publicly available. In this case, you can check out the online pages for information on the person’s financial situation.
When the information you’re looking for isn’t readily available through this method or you want more insight, websites like Asset Search will let you know a person’s financial position and net worth.
In addition, you can look up an individual’s financial situation by using background check websites (e.g. Truthfinder or Instant Checkmate). You will also have access to public and criminal histories, as well as family info. The only catch is that the sites don’t come for free.
Getting In-Person Documents
The best way to find out someone’s net worth is to examine their records in person. You can contact the local county clerk to find out where the Uniform Commercial Code filings are kept. Documents like these can provide you with information on any debts and assets your subject has. There may be liens on the individual you are searching for if people owe them money. If there are unpaid bills, you will find them there.
As an additional source of information on a person’s financial status, you can also check out the credit bureaus.
How to Find Out Your Own Net Worth?
You can calculate your net worth by adding up all the assets and liabilities you have. Basically, you add up your bank account balances and valuables, such as cars and jewelry. Add all your debts together, including your credit card debt and loans. Then, you will be able to get your net worth by subtracting your debts from your total assets.
Why is it Necessary to Know Your Net Worth?
Knowing your net worth is important for two reasons:
- This can help you get a better sense of your financial situation.
- You can measure your success in reaching your goals by referring to it.
As you save and earn, your net worth should grow. If you have a negative net worth, you need to cut back on your spending and increase your savings.