Financial Independence — Get An individual’s Net Worth
So your goal is financial independence. You’ve set up your allowance and have found ways to start saving some money. So now what would you do?
I’m a basketball junkie and I enjoy watching games especially college games. Not in just basketball games however in virtually every game there is people keep score industry Sean Connery’s Net Worth. That is the thing you need to accomplish because if you may not keep score you do not know if you should be winning or losing.
The best way to keep score in your financial world is throughout your net worth statement. This is really just the difference between your assets and liabilities.
A wealth building asset puts money in to your pocket. It either increases in value as time passes or produces a return. An obligation takes money from the pocket. Liability is a debt, usually a debt owed to an establishment or even to an individual.
To find your net worth you’ll need to construct your personal balance sheet or you’ll need to help keep score. A balance sheet has two sides. One side is the list of most your assets with a buck amount. One other side is the list of most your liabilities with a buck amount. To put it simply to locate how much you are worth you start by the addition of up your assets and liabilities. Your net worth can be your assets minus your liabilities. You probably have just found your wealth. What exactly you think? Do you need to help keep score?
To assume control of one’s finances you have to do your allowance monthly and your net worth at least once a year. To get in the habit of doing your net worth you must take action either twice annually or quarterly.