So your goal is financial independence. You’ve put up your financial allowance and have discovered a method to start saving some money. So now what do you do?
I’m a basketball junkie and I really like watching games especially college games. Not in just basketball games in almost every game there’s people keep score industry Sean Connery’s Net Worth. That is what you need to do because if you do not keep score you don’t know if you’re winning or losing.
How you can keep score in your financial world is through your net worth statement. That is really just the difference between your assets and liabilities.
A success building asset puts money in to your pocket. It either increases in value with time or produces a return. A responsibility takes money out of your pocket. Liability is just a debt, usually a debt owed to an institution or to an individual.
To locate your net worth you need to build your own personal balance sheet or you need to keep score. A balance sheet has two sides. One side may be the list of all your assets with a dollar amount. One other side may be the list of all your liabilities with a dollar amount. Simply put to find how much you are worth you start by adding up your assets and liabilities. Your net worth is your assets minus your liabilities. You actually have just found your wealth. What exactly do you think? Do you really need to keep score?
To assume control of one’s finances you need to do your financial allowance monthly and your net worth one or more times a year. To obtain in the habit of accomplishing your net worth you should get it done either twice per year or quarterly.