![]() ![]() Maximizing or adding an additional income – this would include investing more into the stock market, investing into mutual funds, selling something that you can buy for less, or basically just acquire those things that can be found in your asset’s list.If you are unsatisfied looking at your Accounting Balance Sheets, you can increase your net worth by doing the following: For example, if subtracting your total liabilities from your total assets gives you a negative net worth, it means that how much you owe is larger or bigger than how much you own. Now, this figure is the representation of what you own ultimately since your total liabilities have already been subtracted from your total assets. To come up with your net worth, you should subtract your total liabilities from your total assets. Examples of liabilities are your bills, loans or debts, mortgage, credit card balances, your daily consumption, and the like. It is also known as expenses however, it goes a longer way than that. According to Investopedia, this type of asset are the things you own that can be easily turned into or transacted into cash without losing any monetary value whatsoever.Īnd when it comes to liabilities, those are simply the things that you owe or the things that are costing you money. ![]() ![]() Liquid Assets – this type of asset consist of cash, saving accounts or money from your bank account, checking accounts, and the like.When including this type of asset in your personal balance sheet, refer to the current market value when adding these to avoid miscalculation. Large Assets – this includes your artwork (art pieces that has market value), boats, cars, furniture, houses, and such.Investments – these are your stocks, certificate of deposit, mutual funds, gold, silver, bonds, exchange traded funds, securities, hedge funds, and whatever form of anything, particularly investments, that adds cash flow or money into your pocket.Now, if you are still confused on how to classify the three major factors that your personal balance sheet consist, this page will break it down to you in details and you can also check out this page’s Budget Worksheets in PDF that you can use as a resource and download it for free. ![]()
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