A projection of an individual’s financial standing, encompassing all assets and liabilities, at specific future dates. This assessment considers current holdings, anticipated income streams, potential market fluctuations, and other relevant financial factors. Projecting net worth can be a useful tool for financial planning and investment strategies. It provides a snapshot of potential future financial health, allowing for adjustments in current practices.
For example, an individual might want to project their net worth five years into the future to gauge the potential impact of a new investment strategy. Another example would be an entrepreneur projecting their net worth over the next two years to assess the financial viability of their business plan. These projections offer a valuable glimpse into the potential future financial landscape.