Balance Sheet and Budget
To be able to assess your financial situation accurately, you need to establish and analyze your personal balance sheet.
To do so, list of your assets (house, cottage, cars, investments, etc.) and your liabilities (mortgage, line of credit, credit card balances, personal loan, etc.). Then, determine your net worth by subtracting the value of your liabilities from the value of your assets.
By comparing your current balance sheet to that of the previous year, you will determine the state of your situation. If your balance sheet has improved, try to identify the source of this improvement. Perhaps your assets increased in value or you have managed to significantly reduce your debt. Conversely, if your balance sheet has remained stable or declined, try to determine why so that you can control or fix it.
Analyzing your personal balance sheet reveals your annual financial progress and helps define strategies to grow assets and reduce liabilities to optimize savings planning.
This document has been updated on August 31st, 2018 and reflects the state of the Law, including draft amendments, at that date.