Maintain a personal balance sheet
It’s a statement wherein you can jot down your assets and liabilities.
- Pull together your bank statements and other proofs of the liabilities
- List down your assets like the bank balance, all investments, home value, and value of other assets.
- Take a sum of all the assets to arrive at the total value of your assets.
- List down your liabilities the (car loan, home loan, credit card balances etc.)
- The sum of all the liabilities will show the value of the money you owe.
- When you subtract the value of liabilities from assets, you get your Net Worth.
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