15 Feb '14, 10am

$avvy #Blog Corner: Running yourself like a company - Balance sheet #finance #asset

$avvy #Blog Corner: Running yourself like a company - Balance sheet #finance #asset

Another report to look at is the balance sheet. This shows how your liabilities are like against your assets, and also the breakdown of the liabilities and assets. The sum of your assets minus your liabilities will be the book value of a company. In terms of your personal balance sheet, this is known as your net worth. I know there are a million ways to calculate net worth, so it's up to you to decide which definition you want to adopt. It doesn't really matter as long as you keep the standards the same when you compare yourself against different time periods. Just don't change the yardstick all the time. It'll be like a company that changes their way of valuating their biological assets or the rate of depreciation or their accounting period. It's important to know that similar to the balance sheet of a company, a personal balance sheet is a static picture of a company's a...

Full article: http://www.cpf.gov.sg/imsavvy/blog_post.asp?postid=901303...

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