How money works is one of the most important subjects you can learn. Yet, oddly enough it’s generally omitted from our schooling. Realize it isn’t just about how much money you make, but of equal importance is how much you keep, and therefore have available. And not just what you think you have (assets) but what you are really left with after you pay off any debts (assets – liabilities). This is the calculation for your net worth. Almost everything in life is affected by not just how much you make, but how much you actually have. For instance, you could be making $8,000 per month, but if your expenses are $7,500 you probably don’t have that much saved, if anything at all. Whereas, you could earn a much lower monthly income but, through budgeting and prudent management, you could have saved $10,000 (or more) to cover that emergency expense, or take advantage of that investment opportunity, or to help out someone in need, and so on.
Again, most things comes down to how much you keep and what you can do to increase it. Now we are not saying that you don’t need to make a lot of money, quite the contrary, you should aim as high as you can think, but net worth must always be kept at the forefront of every financial plan. Make more yes, but keep and have more. You can have enough to enjoy a fabulous life while creating an inheritance to pass on to your next generation. You do this by learning and understanding how your life insurance, investments, debt and other financial vehicles work, and not by just being sold them. That’s where we come in…to help you significantly increase your net worth with financial literacy.
Your net worth is EVERYTHING!
OWN – OWE = NET WORTH
Watch this video to get a great overview on effective financial planning. Then click below to book a no cost, and no obligation appointment with us to have this knowledge channeled into your own specific situation to help you transition from where you are now to more importantly, where you want to be financially.