Da Gooruf Uk – “Where am I at?” How to identify and understand your financial position
For many people, their financial situation is something which is very important to them. It is entirely understandable that you want to be able to identify where you stand with regards to personal finance so you know where you can go in the future and how much money you can afford to spend at any given point. We understand that, and so we’re going to be looking at how you figure out your financial position.
So how do I identify my financial position?
To be able to figure out your financial situation, you’ll need to gather the documents which provide certain information. Bank statements, mortgage payments and anything which pertains to an important financial area of your life should be found and brought together in one place.
The next thing you’ll need to do is list all of your assets and your liabilities. Your assets are the things that you own, so, for example, your property, your car, and any other valuable possessions. Your liabilities are the debts that you have, so, for instance, credit card loans or mortgage payments. These loans can be anywhere from short-term payments to long-term payments, but they all count.
From there, it is just the process of taking the amount you have in assets from the amount you have in liabilities. This will give you your net worth, which will be positive or negative accordingly.
To summarise, knowing your financial position is very important for ensuring that you can make the best choices going forward about your financial decisions. Knowing exactly where you will allow you to make a series of informed decisions which will keep you from falling into problems with money. A well planned financial life will ensure that you have enough money for the things that you want, without being unable to afford the things that you need.