The balance sheet calculates your worth by listing what you own and deducting what you owe. Keep the value of what you own (assets) higher than the value of what you owe (liabilities).
To produce a Balance Sheet simple write down all the things you own which have a value to sell – include cars, houses, artwork etc. but not small items like pens, glasses, toys. Now write down all the people you owe money to. Make sure you put an estimated value next to each line. Add up each list and subtract the owing from the owned amounts. This is your wealth or equity! Compare this each year to monitor your progress and if it is going down act sooner than later to change the trend.
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