To get this free personal balance sheet, click here.
What is a Personal Balance Sheet, why you need one, and how to improve yours.
From http://www.threetypes.com/
A balance sheet is a very simple, yet very powerful tool. If you’ve ever studied a company before buying its stock, the first place you went was probably the balance sheet, because this is where the company itemizes all of its assets and liabilities into a single location, adds them together, and comes out with a number that indicates the company’s net worth.
The balance sheet is one of the most important tools that a business uses to indicate its financial health, and can be one of the most important tools you can use to analyze your financial health. In fact, you can use the balance sheet the same way billion-dollar companies do, and for the same purpose – to evaluate your current financial health and net worth at a single point in time. Notice that I said, “at a single point in time.” Unlike some financial documents that give some indication of what money is coming in and what money is going out, all the Balance Sheet cares about is how much money you have at a fixed point in time.
This site will walk through the three simple steps of creating your own personal balance sheet. In future posts, they will analyze your balance sheet to determine where and how to focus your efforts on improving your financial health
Once you have your list of assets (and their values) and your list of liabilities (and how much you owe on each), all you have to do is subtract the total value of your liabilities from the total value of your assets, and the resulting number is your net worth:
Net Worth = Assets – Liabilities
To see an example of what a personal balance sheet might look like, and to download a template that you can fill in yourself, click here.
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