Depreciation is another principle that can fit with our personal finances. How much is that vehicle we own worth compared to what we paid for it? Unlike real estate which often trends upward in value over time our car values are headed in the opposite direction.

Looking at what you own and what you owe on these assets would both factor into your personal balance sheet. Add in bank accounts and investments, subtract student loans and carried balances on credit cards and you can begin working toward you net worth.

What strategies might you take as an individual or family to improve your assets, reduce your liabilities and increase your net worth? What other items would fall into the asset or liability category?