Day Two - Balance What You Own and Owe

Thank you for completing the day one task. Was it easy?

Let me know if you have any questions.

Those who have not completed the Day One task yet.

Please do it today and share the "Day 1 Done" comment on our Facebook group.

Now, let's move on to Day Two.

Today, we will start by imagining a company with no books of accounts.

No profit and loss statement, no balance sheet, and not even an accounts team! But they have an excellent sales team, manufacturing, marketing, and all other functions, but no accounts team.

Was it easy imagining such a company? 

If yes, How long do you think this company will survive?

Not for long, isn't it?

So how different are you from this company?

Whether you are salaried, a professional, entrepreneur, or a business owner, aren't you selling your time, skills, and expertise for money?

Instead of a product, you are selling your services.

So if a company needs to maintain books of accounts, shouldn't you also?

Books of Accounts

Yesterday, you prepared the income and expense statement and projected your cash flow for the whole year. 

Today you will draw a personal balance sheet to determine your net worth.

You will also bring these together to start analyzing the data.

What is Networth Statement?

A net worth statement or a personal balance sheet shows what you own and how much you owe to others.

It shows if you are building wealth or living in debt.

It also helps you classify your assets and liabilities under different heads to help you balance your financial life.

Where do you stand?

The average net worth of a resident in UAE is $99000, while the global average is $87,489. 

Let's find out what is yours.

How to use the Networth Statement?

The template consists of 3 sheets.

1. Dashboard: The dashboard provides a summary of your assets and liabilities. You cannot edit this sheet. 
2. Assets: This sheet helps you record and classify all your assets under one of the following heads, viz., Personal, Retirement, Cash & Investments
3. Liabilities: Here, you can record and classify your liabilities into secured and unsecured liabilities.

Click here to download the Personal balance sheet template. 

Go ahead and populate this template and share your experience with us on our Facebook group. You can drop a simple Day 2 Done comment as well.

Our group is a platform to share your experience, learnings, and success stories and to ask relevant questions. 

Please do not share these statements online. Keeping your financial data private and secure is crucial and your responsibility. 

See you tomorrow.

 Click here to download the Personal balance sheet template.