So that your goal is financial independence. You’ve setup your budget and are finding ways to start saving some money. So now what do you do?
I’m a basketball junkie and I love watching games especially college games. Not in only basketball games in virtually every game there’s people keep score industry Sean Connery’s Net Worth. That’s things you need to complete because if you may not keep score that you do not know if you’re winning or losing.
How you can keep score in your financial world is during your net worth statement. That is really just the difference between your assets and liabilities.
A wealth building asset puts money into your pocket. It either increases in value over time or produces a return. A responsibility takes money from your pocket. Liability is a debt, usually a debt owed to an establishment or to an individual.
To get 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 is the list of all your assets with a buck amount. Another side is the list of all your liabilities with a buck amount. To put it simply to locate how much you’re worth you start by adding up your assets and liabilities. Your net worth can be your assets minus your liabilities. You really have just found your wealth. What exactly you think? Do you want to keep score?
To assume control of one’s finances you need to do your budget monthly and your net worth at least once a year. To obtain in the habit of doing your net worth you should get it done either twice annually or quarterly.