How To Determine Your Financial Health

How can I determine my financial health?

Individuals can evaluate their own financial health by preparing a simple balance sheet. A balance sheet is a financial statement that businesses and accountants use to evaluate financial health. It itemizes assets, things that are of value that an individual has, and it itemizes debt, which is a reduction of the value of the assets that one has, and it then shows what net worth is. Hopefully you have a positive net worth, meaning your assets exceed your liabilities.