Most of us have probably heard of the term balance sheet of a company, which gives a snapshot of the financial picture of a company at a point in time. It shows a summary of the assets (what it owes), liabilities (what it is owed) and shareholder equity (or net worth) at a specific date and is used to assess the current financial health of the business.
When it comes to our own financial health, however, how many of us have a good understanding of where we stand? Most of the times, the information is scattered across so many places that we probably shudder at the effort required to gather the necessary data.
Some may equate their financial health to the level of cash in the bank account (but is it the optimal use of cash?), some may equate their financial health to the assets that they owe (but how are they financed?), so without having drawn up a personal statement, we would at best have a hazy and incomplete view of our finances.
Think about it, if we desire to set some form of financial goals and if we don’t know where we stand, how do we keep track of progress made? The younger you are, the easier the task would be, so don’t hesitate, click here for a copy of the net worth statement, and start tabulating today!
This is speaking from personal experience. This is a task that I put off for years, but when it is finally done, I wondered what took me so long! The first step is usually the most difficult, as with most things.
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