Let’s begin by looking at what a budget is and what it isn’t. If you want to build wealth and get money fit with your personal finances you must live by a budget. The remaining $90,000 is considered a liability.First, let’s take an in-depth look into why maintaining a household budget is so important to the financial success of you and your family. Although the house is a $150,000 asset, the person really owns only $60,000 of the value of the house. However, if she still owes $90,000 to the bank on the house, then her house is also a liability of $90,000. If a person’s house is worth $150,000 then she has an asset of $150,000. A liability is money owed, like a mortgage. An asset is something owned, like a house. To do this, look at all assets and liabilities. Now that you have an idea what a budget might look like, it’s time to look at the overall financial situation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |