A Powerful Exercise - Calculate Your Networth
You don't need to be an accountant. Take a paper and draw a line down the middle. On the left list the value of all your assets - Cash, cars, stocks, real estate, personal property etc. On the right list everything you owe - mortgages, credit cards, car loans, any other debts. Add up all of the assets and subtract the total debts. This number is your net worth. It changes as 1. your assets go up in value and you earn cash ie income, 2. you reduce debt ie you use cashflow to pay debts off.
Calculate this number and see where you are relative to your goals and then commit to doing this at least every three months just like companies do. It is good discipline and the true measure of financial success. Obviously there is more to life than money, but we are all in business to make money and this is the score card, so start keeping score.
Calculate this number and see where you are relative to your goals and then commit to doing this at least every three months just like companies do. It is good discipline and the true measure of financial success. Obviously there is more to life than money, but we are all in business to make money and this is the score card, so start keeping score.