So your goal is financial independence. You’ve 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 just basketball games but in nearly every game there is people keep score industry Sean Connery’s Net Worth. That is things you need to accomplish because if you do not keep score you don’t know if you are winning or losing.
How you can keep score in your financial world is through 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 as time passes or produces a return. A liability takes money out of your pocket. Liability is really a debt, usually a debt owed to an organization or even to an individual.
To get your net worth you will need to build your own personal balance sheet or you will need to keep score. A balance sheet has two sides. One side may be the list of all your assets with a dollar amount. Another side may be the list of all your liabilities with a dollar amount. To put it simply to find how much you are worth you begin by the addition of up your assets and liabilities. Your net worth is the assets minus your liabilities. You truly have just found your wealth. What exactly you think? Do you really need to keep score?
To seize control of one’s finances you have to do your allowance monthly and your net worth at least one time a year. To get in the habit of doing your net worth you need to do it either twice a year or quarterly.