How is a calculation of net worth different from a day-to-day or month-to-month tallying of expenses?

Accepted Solution

When net worth is calculated on daily basis, we add total expenditure of a day on a work sheet or on a sheet of paper or using excel , then we  add the total expense of each day using excel or by calculator or by Using mental Math.Now, coming to monthly expenses, we add total expenditure of 12 month using excel or on a rough sheet of paper or by using calculator .For, example, A shopkeeper sells 50 ice cream in a day , making a total expense of $ 240 in a day to earn a profit of $ 250.So we can calculate his day to day expense as well as earning on a excel sheet. Similarly we can find his yearly expense or income by adding his monthly income.