Personal Assets & Liabilities Assessment - Creating a Personal Balance Sheet
What are your assets and liabilities?
Today's Affirmation
I always maximize my assets and minimize my liabilities.
If you're familiar with how business operates, you are probably also familiar with the balance sheet. The balance sheet is a financial statement that captures a snapshot of the company's assets and liabilities at a given moment.
The goal of a for-profit business is to use its available assets to generate sales and profit. However, most companies have to take on liabilities to achieve that goal. They have bills, investments in infrastructure and product development, and debt.
Just like a business, you and I have assets and liabilities as well. Our goal is to use them in business of life to generate profit. That profit comes in the form of happiness, success, and fulfillment. To have success as a business or human being, we have to make maximum use of our assets and do our best to mitigate our liabilities to achieve the desired result. Just like a business our assets and liabilities will change over time. So, capturing it is just a snapshot of right now.
Power hack: Consider creating your personal balance sheet to capture all the assets you have at your disposal and all the liabilities that present challenge to reaching your goals. Then devise plan use your assets to achieve your goals.Here's a non-exhaustive list of possible assets to get you started. Make your own. Be thorough and honest.
Talents
Skills
Other people
Experience
Education
Intangibles
Spiritual strength
Physical stamina
Here are some possible liabilities. Again, make a list that fits you.
Physical challenges
Financial challenges
Lack of education
Lack of experience
Not sure how to get started
Once you have your personal balance sheet. Review your goals in light of your balance sheet. What assets are you using well and what assets are not using at all? Look at your liabilities and devise potential ways to either solve, mitigate, or work around them.You might be thinking I can just make a list of my assets and liabilities in my head. Sometimes having a visual can really put things in perspective and help you catch opportunities you're missing.
Have a happy and successful evening!
Ray