So your goal is financial independence. You’ve put up your allowance and have discovered a method to start saving some money. So now what would you do?
I am a basketball junkie and I love watching games especially college games. Not in only basketball games but in almost every game there’s people keep score industry Sean Connery’s Net Worth. That’s what you need to complete because if you may not keep score that you do not know if you’re winning or losing.
The best way to keep score in your financial world is through your net worth statement. This really 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. An obligation takes money out of your pocket. Liability is just a debt, usually a debt owed to an organization or even to an individual.
To locate your net worth you will need to construct your personal balance sheet or you will need to keep score. A balance sheet has two sides. One side may be the list of your assets with a dollar amount. Another side may be the list of your liabilities with a dollar amount. To put it simply to find simply how much you are worth you begin with the addition of up your assets and liabilities. Your net worth can be your assets minus your liabilities. You actually have just found your wealth. Just what exactly do you think? Do you really need to keep score?
To seize control of your finances you have to do your allowance monthly and your net worth at least once a year. To get in the habit to do your net worth you should get it done either twice annually or quarterly.