A net worth statement, financial goals, and a budget are all part of a FINANCIAL PLAN.
A financial plan is defined as a comprehensive evaluation of the individual's current financial status to plan or prepare for the individual's future financial state.
A financial plan is based on financial goals. These can include college education, buying a home, starting a business, or retirement. Financial goals are set to be used as milestones of the plan.
A personal net worth statement is a listing of a person's assets and liabilities. It helps measure a person's progress towards their financial goals.
A budget helps a person decide how much to set aside for debt repayment, savings and investing each month.
