For most individuals, even those who are meticulous with their finances, few take the time to work out a personal balance sheet. There are numerous reasons why a personal balance sheet would prove effective and even essential.
The goal of the working class individual is to be able to acquire wealth and save for retirement. Simply working every day and putting money away may be a noble act, but unless that money is being invested, then it becomes nearly impossible to obtain true wealth, which is essential for retirement.
On a personal level, a balance sheet will provide basic information about what you have, such as your assets, savings, and more, minus what you owe, or your debts and liabilities. The subsequent number is what is known as your worth. Your monetary value.
O - Keep a notebook with you for the next week. Write down everything you spend using cash. Don't even think about skipping the Pepsi you bought to get you through the afternoon. EVERY PENNY! We will use this information next week! :)