Which means that your goal is financial independence. You have put up your allowance and are finding a method to start saving some money. So now what do you do?
I am a basketball junkie and I really like watching games especially college games. Not in only basketball games in virtually every game there is people keep score industry Sean Connery’s Net Worth. That is the thing you need to do 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 throughout your net worth statement. This really is really just the difference between your assets and liabilities.
A wealth building asset puts cash in your pocket. It either increases in value with time or produces a return. An obligation takes money from your pocket. Liability is really a debt, usually a debt owed to a company or to an individual.
To find your net worth you will need to put together your individual balance sheet or you will need to keep score. A balance sheet has two sides. One side could be the list of most your assets with a dollar amount. Another side could be the list of most your liabilities with a dollar amount. To put it simply to locate just 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 really need to keep score?
To assume control of one’s finances you should 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 get it done either twice annually or quarterly.