Both investors and gamblers take on risk. the difference between an investor and a gambler is that an investor:
a. is normally risk neutral
b. requires a risk premium to take on the risk
c. knows he or she will not lose money
d. knows the outcomes at the beginning of the holding period

net worth is the difference between what you own and what you have. if you exceed your liabilities you have a positive net worth. if your liabilities are greater than your assets you have a negative net worth. its a snapshot of your financial situation. if you calculate your net worth you will see the end result of everything you've earned and spent as of now. net worth statements and all you asked of can you determine where you are, how to get where you want to be, if your spending   to much. honestly it can tell you a lot of things. i can go on, but you can paint the picture from here.

explanation:

answer casual models;