So your goal is financial independence. You have create your allowance and have discovered a method to start saving some money. So now what would you do?
I’m a basketball junkie and I love watching games especially college games. Not in only basketball games in almost every game there’s people keep score industry Sean Connery’s Net Worth. That is the thing you need to complete because if you do not keep score that you don’t know if you are 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 over time or produces a return. A responsibility takes money from the pocket. Liability is just a debt, usually a debt owed to a company or even to an individual.
To find your net worth you need to put together your own personal balance sheet or you need to help keep score. A balance sheet has two sides. One side may be the list of your assets with a dollar amount. One other side may be the list of your liabilities with a dollar amount. Simply put to locate how much you’re worth you begin by adding up your assets and liabilities. Your net worth can be your assets minus your liabilities. You probably have just found your wealth. Just what exactly you think? Do you need to help keep score?
To assume control of one’s finances you need to do your 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 take action either twice annually or quarterly.