Assets are things of value, because it can be exchange into cash. Your assets include real estate property you personally own and some of your financial investment. On the other hands you have debts as your liabilities. For this case, your home is your asset, but the mortgage of your home is your liability.

Assets include real estate, personal property and all your financial assets. (more…)

For a complete look at your financial situation, you should create a personal balance sheet and a cash flow statement. These reports are known as personal financial statements. A personal financial statement is a document that provides information about an individual’s current financial position and presents a summary of income and spending. (more…)