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Our Financial Resources The Loan Process Company Information
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Inside
This Article: Wealth Creation.
Learn the Language You want to create personal wealth, right? So does Bob. Bob is 35 and works for a manufacturing company. He looked at his finances and realized that at the rate he was going, there wouldn't be enough money to meet his family's financial goals. So he chose to embark on a personal wealth-creation strategy. His first major step was to read this article for guidance. Bob began by learning the language of wealth creation. The first lesson was to understand the meaning of assets, liabilities and net worth. They make up this very important formula:
A wealth-creating asset is a possession that generally increases in value or provides a return, such as:
Some possessions (like your car, big-screen TV, boat and clothes) are assets, but they aren't wealth-creating assets because they don't earn money or rise in value. A liability, also called debt, is money you owe, such as:
Net worth is the difference between your assets and liabilities. Your net worth is your wealth. To calculate how much he is worth, Bob used the following formula:
He made a balance sheet listing all his assets and all his liabilities. He listed his wealth-building assets first. Bob's Balance Sheet
Bob discovered his net worth is $21,600. Using Bob's balance sheet as an example, figure your own net worth. Click here to create and calculate your own balance sheet! Be sure to add any assets and liabilities you have that are not listed here. Remember that net worth is your wealth. Are you worth as much as you want to be? |
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Fallbrook Financial Services
- 6700 Fallbrook Avenue, Suite 111, West Hills,
CA 91307 info@FallbrookFinancialServices.com
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