Disclosure: Some of the links below are affiliate links. Meaning at no additional cost to you, I will earn a commission if you click through and make a purchase. Don’t worry though. I only recommend products that I believe will help you on your journey.
Check Out Related Episodes & Resources
- Please Stop Doing Money Dates
- Why You’re Not Budgeting Even When You Know You Should
- 4 Simple Things You HAVE To Know To Run Your Books Correctly
- Why You Need To STOP Saving For A Rainy Day
- FREE Cash Flow Calculator
Do You Think You’re Blind?
Recently at church I heard a message about spiritual blindness. It was a great message and it got me thinking about being blind in your finances. So, let’s talk about what that means.
One of the definitions of blindness is lacking perception or awareness. Now I believe when it comes to finances then can be willful. You can turn a blind eye because you don’t want to know how bad things really are. However, sometimes it is out of ignorance. The problem with the willful blindness is that you cannot change someone’s opinion of anything. They must choose that change. So, until someone is ready to “face the music” they will continue to remain blind.
If you are blind let’s go through the 5 steps to uncover your eyes regarding your finances.
- Tell Someone – Have someone hold you accountable to completing these steps so that if/when things get tough you can push through!
- Gather Your Income Data – Figure out how much income you are bringing in monthly, you can look at gross numbers if you want but I would recommend net if you are an employee.
- Gather Your Asset Data – Any vehicles, houses, gold/jewelry, cash savings etc. This is important if you have a loan on any of these items it is not truly your asset, it is the bank’s asset because they are making money off you every month! However, for this exercise, you can take the value of the item (either house vehicle etc.) and subtract what you owe determine the positive equity you own. Find out what the total is of all your assets.
- Gather All Of Your Debts – I would recommend itemizing with the creditor in one column and the amount of the debt in another. To get a true picture I would include EVERYTHING. Add all the debts together to get a grand total.
- Discover Your Net Worth – Simply subtract the asset number from the debt number to find out what your net worth is.
Unfortunately, what most people come up with is a negative number. So, if you did come up with a negative number know you are not alone! The good thing is now that you know where you are at you can start to make changes.
If you are wanting to make positive changes to your net worth, then the first thing I would recommend is to create your vision of what you want it to look like 3-5 years down the road. Use detail! With that vision, you can work backward to create the steps necessary to achieve your goal.
I do want to point out if you are thinking about not working to improve your net worth that things that are stagnant grow sour. We are either ripening or rotting. With that thought, I think it makes sense to purposefully work to increase your net worth!
YOUR ACTION STEP FOR TODAY – Discover what your net worth is! I want to hear if this has helped you and if you were surprised by your net worth number.
Join the Conversation and Stay Connected – leave a comment below
And
If you found value in this content, please share – the icons should be on the left and directly below!
