Wealth is measured by comparing assets and liabilities

People think an individual with assets valuing a million dollars or more is considered
to be a millionaire.

Is This True?

False.

Wealth is measured by comparing assets and
liabilities.

Assets are the values of what an individual
owns: home, car, savings, cash value of life
insurance, and so forth.

Liabilities are the money an individual owes:
mortgage, car loan, credit card debt and so
forth.

The difference between an individual’s assets
and liabilities is called net worth.