Home Business & Finance The handy investing answer book
How old is the New York Stock Exchange?
The New York Stock Exchange is the oldest stock market in the United States. It was founded in 1792 by 24 stockbrokers who met at 68 Wall Street, but it was not officially founded until a constitution was signed in 1817.
What is the first step to accumulate wealth and savings?
Most experts agree that you must first understand your financial picture, to see what areas need to be altered or changed, by identifying your net worth. Others believe you must first change your basic attitudes and beliefs about money and wealth in order to reach your financial goals. And still other experts believe you must first establish financial goals—without them, you have no way to attain success. Perhaps combining the above ideas is a prudent course of action.
What is my "net worth"?
Your net worth is one of the most important measurements of how much you are "worth" financially. Your net worth is the value of all your assets, including cash, stocks and bonds, mutual funds, retirement accounts, including your IRAs and 401(k)s, and equity in your homes, any metals (such as gold or silver), minus all of your liabilities, that may include car loans, mortgages, credit card debts, student loans, significant health-related expenses, and any other obligations you may incur.
What is a "high net worth individual"?
A high net worth individual is someone who has a net worth, excluding the value of his principal residence, in excess of $1 million.
Why is knowing my net worth important to attain my financial goals?
Understanding and computing your net worth provides instant feedback as to your ability to save money, shows you how indebtedness may drain your savings, and fund the costs of your borrowing to cover expenses. Knowing your net worth also provides you with a way to visualize how you, in certain conditions, create wealth through borrowing, especially if you borrow money at interest rates that are low enough, and invest this cash in, for example, a real estate market that has increasing values over time.
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