So that your goal is financial independence. You’ve set up your allowance and have found a way to start saving some money. So now what do you do?
I am a basketball junkie and I love watching games especially college games. Not in only basketball games however in almost every game there’s people keep score industry Sean Connery’s Net Worth. That’s the thing you need to do because if you don’t keep score that you don’t know if you are winning or losing.
How you can keep score in your financial world is during your net worth statement. That is really just the difference between your assets and liabilities.
A success building asset puts cash in your pocket. It either increases in value over time or produces a return. A responsibility takes money out of your pocket. Liability is really a debt, usually a debt owed to an establishment or even to an individual.
To find your net worth you will need to build your individual balance sheet or you will need to help keep score. A balance sheet has two sides. One side may be the list of all your assets with a buck amount. One other side may be the list of all your liabilities with a buck amount. To put it simply to find just how much you’re 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. What exactly do you consider? Do you really need to help keep score?
To assume control of one’s finances you need to do your allowance monthly and your net worth one or more times a year. To have in the habit of doing your net worth you must get it done either twice annually or quarterly.