1
00:00:00,050 --> 00:00:05,675
This is Steve and this is Steve's uncle and Steve is in a bit of a bind.

2
00:00:05,675 --> 00:00:11,503
Not only does he not have any money but he also owes Michael (who is not depicted here).

3
00:00:11,503 --> 00:00:16,088
He owes Michael $3. So he actually has a negative net worth.

4
00:00:16,134 --> 00:00:26,164
Steve has a net worth of -3. Steve's uncle cares about Steve and feels bad that he doesn't even have a 0 net worth; he has a negative net worth!

5
00:00:26,164 --> 00:00:34,676
And so Steve's uncle wants to at least take away some of this pain. He at least wants to get Steve back to a neutral net worth, a 0 net worth.

6
00:00:34,738 --> 00:00:45,723
So he decides to take away Steve's negative net worth. He wants to take away that -3.

7
00:00:45,723 --> 00:00:56,816
What happens if you take away that -3? Well, that should get you back to 0. If you take away anything...if you have something and you take it away, it should go back to 0.

8
00:00:56,816 --> 00:01:03,814
Similarly if you owe people things and that owing people things is taken away, it also gets back to 0.

9
00:01:03,906 --> 00:01:12,311
Another way to think about it is how Steve's uncle would actually take that liability/debt away from Steve.

10
00:01:12,311 --> 00:01:25,001
Well, the easiest way he could do it if Steve is starting at -3 net worth is for his uncle to give Steve $3, so that he(Steve) can get back to a net worth of 0.

11
00:01:25,001 --> 00:01:34,836
So hopefully, that makes it a little bit clearer, that this and this are intuitively equivalent.