main reasons worth is not accurate is simply because the moment you begin selling your assets； you are taxed for any gains。
So many people have put themselves in deep financial trouble when they run short of ine。 To raise cash； they sell their assets。 First； their personal assets can generally be sold for only a fraction of the value that is listed in their personal balance sheet。 Or if there is a gain on the sale of the assets； they are taxed on the gain。 So again； the government takes its share of the gain； thus reducing the amount available to help them out
Of debt。 That is why I say someone's worth is often 〃worth less〃 than they think。
Start minding your own business。 Keep your daytime job； but start buying real assets； not liabilities or personal effects that have no real value once you get them home。 A new car loses nearly 25 percent of the price you pay for it the moment you drive it off the lot。 It is not a true asset even if your banker lets you list it as one。 My 400 new titanium driver was worth S150 the moment I teed off。
For adults； keep your expenses low； reduce your liabilities and diligently build a base of solid assets。 For young people who have not yet left home； it is important for parents to teach them the difference between an asset and a liability。 Get them to start building a solid asset column before they leave home； get married； buy a house； have kids and get stuck in a risky financial position； clinging to a job a