Financial Independence — Come across Your current Net Worth
So that your goal is financial independence. You have put up your financial allowance and have found a method to start saving some money. So now what can you do?
I’m a basketball junkie and I love watching games especially college games. Not in just basketball games in almost every game there’s people keep score industry Sean Connery’s Net Worth. That is things you need to do because if you do not keep score you never 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 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 as time passes or produces a return. A responsibility takes money from your pocket. Liability is really a debt, usually a debt owed to an organization or to an individual.
To find your net worth you need to construct your individual balance sheet or you need to help keep score. A balance sheet has two sides. One side could be the list of your assets with a dollar amount. The other side could be the list of your liabilities with a dollar amount. To put it simply to get how much you’re worth you begin with the addition of up your assets and liabilities. Your net worth is your assets minus your liabilities. You truly have just found your wealth. What exactly do you consider? Do you want to help keep score?
To take control of your finances you should do your financial allowance monthly and your net worth one or more times a year. To get in the habit of doing your net worth you must get it done either twice annually or quarterly.