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Personal Balance Sheet - prepare it at least once a year...

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The University of Texas at Austin McCombs School of Business, Business Foundations Program ACC 310F: Foundations of Accounting Personal Balance Sheet In order to improve your financial situation, you need to know what your current financial situation looks like. Just like businesses have a balance sheet, you can create a personal balance sheet to determine your financial condition. First, you simply need to list your assets and liabilities in detail; however, unlike a company’s balance sheet your equity or “net worth” is calculated by subtracting your total liabilities from your total assets. Your net worth may be positive or if you're young or have significant debt, it may be negative. Because money constantly flows in and out your life, your net worth is a snapshot in time and changes day to day. Likewise, you could prepare your balance sheet as often as you’d like, but should
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Unformatted text preview: prepare it at least once a year. Calculating the value of your assets may take some work; find and use your actual account and investment balances. Use fair-market values for real property (e.g. homes and automobiles) and other fixed assets. To do so, use the internet and websites such as Yahoo! Finance (for stock values), Kelly Blue Book (for auto values) or eBay (for personal property values) or if needed, you can estimate the fair value of specific assets. For your liabilities, find and use your actual account balances such as outstanding credit card balances, student loan or other loan balances. Finally, calculate your net worth by subtracting your total liabilities from your total assets. You can use the form below to help you get started. Page 1...
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