So that your goal is financial independence. You’ve set up your budget and have found a way to start saving some money. So now what do you do?
I’m a basketball junkie and I really like watching games especially college games. Not in just basketball games in virtually every game there’s people keep score industry Sean Connery’s Net Worth. That is what you need to complete because if you do not keep score that you don’t know if you should be winning or losing.
The way to keep score in your financial world is during your net worth statement. This really is really just the difference between your assets and liabilities.
A success building asset puts money in to your pocket. It either increases in value with time or produces a return. An obligation takes money from the pocket. Liability is a debt, usually a debt owed to a company or to an individual.
To get your net worth you need to build your personal balance sheet or you need to help keep score. A balance sheet has two sides. One side may be the list of most your assets with a dollar amount. One other side may be the list of most your liabilities with a dollar amount. In other words to get simply how much you are worth you begin by adding up your assets and liabilities. Your net worth can be your assets minus your liabilities. You really have just found your wealth. What exactly do you think? Do you really need to help keep score?
To seize control of one’s finances you should do your budget monthly and your net worth at least one time a year. To get in the habit of accomplishing your net worth you ought to take action either twice per year or quarterly.