Net Worth
In three to six words, it's......
Everything You’ve Accumulated or will Accumulated
Cash
Investments
Property
Stuff (toys.....)
We’ve talked about income and debt which make up the two componets of net worth. The question now becomes “What is it you want to accomplish?”
Well balanced??
Cash, Investments, Property.....all
Your previous past doesn’t define you current path. Whatever you did in the past isn’t who you are necessary destined to become. You chose your path.
If you’re married, you and your spouse needs to be on the same page when it comes to your dreams and goals. This is even more true when it comes to building wealth.
In the Millionaire Mind book, Dr. Stanley talks about having a supportive spouse.
Like anything else you want to achieve in your life, these are the steps.
1. Decide that you want change in your life.
2. Decide on a goal that you want to accomplish
3. Decide on a time line for when you to accomplish this goal
4. Start with a budget (write down what you want to accomplish)
5. Set up an emergency fund
6. Decide you’re not going to use credit (debt) to finance your life style
7. What’s left over after tithe and expenses
8 Set your tithe and the amount you expect to have left over aside for emergencies / investments
9. Look for opportunities (to save money or to increase your income)
10. If you own a home, how long will it take to pay it off?
11. If you own a car with debt, how long will it take to pay it off?
12. If you own other debt, how long will it take to pay it off?
13. Find a mentor that will cheer you on. You are the average of the five people, you spend the most time with.
14. Journalize your journey
15. Celebrate small victories in some way.
Creating Net Worth -
1. Pay off your debt
2. Max out your investments and retirment accounts
3. Cut expenses
4. Buy stuff using cash (Don’t use debt....ie cash, electronics). Make sure the stuff you buy will last.
5. Find a mentor, join a group
6. Talk to a professional