So your goal is financial independence. You’ve create your financial allowance and have found a way to start saving some money. So now what do you do?
I am a basketball junkie and I really like watching games especially college games. Not in only basketball games in virtually every game there is people keep score industry Sean Connery’s Net Worth. That is things you need to do because if you may not keep score that you don’t know if you are winning or losing.
The way to keep score in your financial world is through your net worth statement. This is really just the difference between your assets and liabilities.
A wealth building asset puts cash in your pocket. It either increases in value with time or produces a return. A liability takes money out of your pocket. Liability is a debt, usually a debt owed to an organization or to an individual.
To find your net worth you will need to construct your personal balance sheet or you will need to help keep score. A balance sheet has two sides. One side is the list of your assets with a buck amount. One other side is the list of your liabilities with a buck amount. To put it simply to locate how much you’re worth you start by the addition of up your assets and liabilities. Your net worth can be your assets minus your liabilities. You truly have just found your wealth. Just what exactly you think? Do you really need to help keep score?
To take control of one’s finances you have to do your financial allowance monthly and your net worth at least one time a year. To have in the habit to do your net worth you ought to do it either twice annually or quarterly.