Back to Basics – Balance Sheet

So far in our back to basics series we’ve explored assets (things we own), liabilities (debts we owe) and net worth (all assets minus all liabilities). This week, we’re covering the balance sheet. Your balance sheet summarizes all of the prior concepts. It’s basically a map of your net worth.

A balance sheet is a snapshot (at a single point in time) of your financial situation. It lists the current values of all of your assets (cash, car, home, investments, etc.) and all of your liabilities (credit cards, loans, mortgage, etc.). These numbers change every day as you buy things, pay down debt, invest, etc.

Keep reading here to see an example and learn how BrightDime keeps your balance sheet always up to date.