Which means that your goal is financial independence. You’ve create your financial allowance and have found ways to start saving some money. So now what can you do?
I am a basketball junkie and I enjoy watching games especially college games. Not in just basketball games in almost every game there is people keep score industry Sean Connery’s Net Worth. That’s what you need to complete because if you do not keep score you don’t know if you’re winning or losing.
The best way to 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 cash in 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 institution or even to an individual.
To get your net worth you need to construct your own personal balance sheet or you need to help 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 get simply how much you’re worth you begin by adding up your assets and liabilities. Your net worth can be your assets minus your liabilities. You actually have just found your wealth. So what you think? Do you want to help keep score?
To assume control of your finances you have to do your financial allowance monthly and your net worth at least once a year. To get in the habit of accomplishing your net worth you need to take action either twice annually or quarterly.