So that your goal is financial independence. You’ve put up your allowance and have found a method to start saving some money. So now what would you do?
I am a basketball junkie and I really like watching games especially college games. Not in only basketball games but in virtually every game there’s people keep score industry Sean Connery’s Net Worth. That’s things you need to do because if you may not keep score you never know if you are winning or losing.
How you can 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 your pocket. It either increases in value as time passes or produces a return. A responsibility takes money out of your pocket. Liability is just a debt, usually a debt owed to an establishment or to an individual.
To get your net worth you will need to build your personal balance sheet or you will need to keep score. A balance sheet has two sides. One side may be the list of most your assets with a dollar amount. The other side may be the list of most your liabilities with a dollar amount. Simply put to locate how much you are worth you start by the addition of up your assets and liabilities. Your net worth is the assets minus your liabilities. You really have just found your wealth. What exactly do you think? Do you really need to keep score?
To assume control of your finances you have 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 should get it done either twice annually or quarterly.