Do you want to take control of your finances, but just don’t know where to begin? Here’s something that you can do today, which will both boost your confidence and empower you to move forward on other personal finance projects.
The first step is to make a list of everything you own (your Assets) and everything you owe (your Debts or Liabilities). Subtract the Liabilities from the Assets, and you have what we call your Net Worth. The most basic form of this list, what I call the “Index Card” approach, can simply include the name of the asset’s owner, (account, property, artwork, etc.), where the account is held or located, and its current value. It’s simply an inventory of everything, and helps ensure that nothing gets lost or overlooked. Continue reading