Net Worth Method is a financial analysis tool used to calculate the total value of an individual's assets and liabilities. It is used to assess the individual's financial health, as the amount of assets owned minus the amount of liabilities owed gives the individual's net worth. This method is useful for individuals to assess their financial situation and make decisions about investments, debt, and savings. The most common type of Net Worth Method is the Balance Sheet Method. This method uses the individual's current assets and liabilities to calculate their net worth. To use this method, the individual must list all of their assets and liabilities, then subtract the liabilities from the assets to get their net worth. Other types of Net Worth Method include the Cash Flow Method and the Income Statement Method. The Cash Flow Method uses an individual's cash flow to calculate their net worth. This method is used to determine the individual's ability to generate future cash flows, such as income and dividends. The Income Statement Method uses an individual's income and expenses to calculate their net worth. This method is used to assess the individual's financial performance over a period of time.