Recording income and expenditures is a first step that you might think of about when you start managing your personal finances. However, not all expenditures are equal. Paying off debts or buying stocks, bonds, etc. decrease the amount of money available, but also decrease liabilities or increase assets, while living …

The net worth is the difference between your assets and liabilities. If you will sell all your assets and pay off all your debts, the amount left over would be your net worth. Determining your net worth is important for financial planning because it allows you to assess your wealth …