Assets and liabilities

Here is a very interesting article that I came across. This explains about net worth and such.

I did not realize that all what is listed here are considered assets--even your company pension. Anyway, very good read!


http://www.macleans.ca/economy/money...-middle-class/

"Even if your income provides you with a comfortable lifestyle, that doesn’t necessarily mean you’re wealthy. Income doesn’t equate to wealth if you’re young and just getting established, or if you’re older and up to your eyeballs in debt. That’s why we consider net worth the true measure of wealth. It includes everything you own—your house, car, bank accounts, RRSP, stocks and bonds, your small business, and even your company pension. Once you’ve added up these assets, you subtract all your debts and liabilities—such as credit card balances, car loans and mortgage—to arrive at how much you’re actually worth."