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10 Ways to Create a Personal Balance Sheet

You can create a personal balance sheet to gain perspective on your financial well-being. In its simplest form, a personal balance sheet details your net worth–basically the amount of cash and property you have, minus your debts and other liabilities. With a little tweaking, your balance sheet can serve as a financial planning tool. Use it to monitor your investments, flag dangerous debt levels and prepare for major expenditures (a home purchase or kids’ college fund) and retirement. Need help getting started? Consider 10 basic ways to create a personal balance sheet that meets your needs.