How Much Are You Worth?

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Ok, so we've heard it all before - from Senators to Presidentiables every time National Elections draw near. The Net Worth of Mr So&So is This Much Billion, etc. etc. etc... For us simple people, how much are we worth?

To determine your net worth, here are simple steps to start computing.

First, if right now you own, I mean really own, 3 cellphones which any wiling buyer (not your friends and relatives!) would gladly pay for at P 6,000 each; 1 notebook/laptop for about P 10,000; a bank account with a total available (meaning withdrawable immediately) of let's say, P 42,000; and jewelry with total pawnshop-appraised value of P 30,000. Your total assets - or things/properties, including your cash, that you actually and rightfully own and control will be:

3 cellphones @ 6,000 = 18,000
1 laptop/notebook @ 10,000 = 10,000
bank account = 42,000
* jewelry @ pawn-appraised value of 30,000 x 3 = 90,000
TOTAL ASSETS = 160,000.00

* We multiplied the jewelry pawn value by 3 because pawnshops generally appraise your treasures at 1/3 of its actual market value.

Next. If you are renting an apartment for P 8,000 per month, that's a liability - a payable. A loan from a friend of about P 1,500 and a credit card payable of P 6,500 - your total liabilities/credit/"utang" in tagalog for this current month, or at least for this example, is P 16,000.

You Net Worth will then be:
Assets of = P 160,000
liabilities of = P 16,000
NET WORTH = P 144,000

In other words, your net worth can be computed by deducting all your credits and payables from all your available cash, receivables (from your friends' loans from you or if you won something, etc.), and owned properties at their fair market value or FMV (the amount any willing third party buyer in a straight forward purchase transaction will pay you).

For clarifications, questions or comments, don't hesitate to drop a comment right after this post. :)


  1. OK, wow, you put some thought into this! If I were to follow your rules, seems like I'm not worth much after all! Darn! :P


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