A balance statement provides a snapshot of the assets and liabilities that create your net worth.
An asset is something you own.
A liability is something you owe to someone.
Assets - Liabilities = Net Worth
You will want to reduce and eventually eliminate your liabilities while increasing your assets.
There are generally two types of assets: income producing (rental houses) and non-income producing (cars)
Assets: | |||
Total Assets: | $0.00 |
Liabilities: | |||
Total Liabilities: | $0.00 |