PERSONAL FINANCE 3: A PERSONAL BALANCE SHEET WITH NO EARNING ASSETS

Many persons have no financial or physical Earning Assets. Often, the only financial Earning Asset is a small savings account.

A person who has no financial or physical Earning Assets but has a good paying job can list his Manhours as an Earning Asset because it is an asset he truly owns and from which he earns.

Manhours can be valued as a Personal Balance Sheet Asset using the total earnings (salaries, professional fees, etc) during a defined period (say, a year).

Including Manhours as an Earning Asset will be an indication of what a person is truly worth, more realistic than if Manhours were not included.

The Balance Sheet can be a Family or Household Balance Sheet when the earnings (Manhours) of the wife or other members of the household who contribute to the household’s earnings are included.