Money360*

A look at MONEY from all angles.

31 October, 2006

How2: Manage Your Money #1 Getting Started

Managing your finances can be a daunting task. The earlier you start and the more you plan, the more satisfied and stress free your life will become. To me starting is one of the most important steps anyone can take. If you have been putting it off, START NOW! The way to start is to figure out where you stand. The easiest way to figure out where you stand is to calculate your NETWORTH. This is pretty easy:

Networth = sum(Assets) - sum(Liabilities)

Your main assets are bank accounts/cash/real estate/stocks/bonds/CDs/material things and your liabilites are credit cards/car loans/student loans/mortgage/etc... I prefer to not count any material things in my assets column. This is mainly because they are not as liquid as one would think. In either case find out where you stand. Congratulations you have completed the first step to managing your money! Next up #2 Goals

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