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- You couldn’t pay for something? \u00a0You had no means to get the money. <\/span><\/li>\n
- Your credit card payments were just too much?<\/span><\/li>\n
- You went through bankruptcy and thought that would be the answer?<\/span><\/li>\n
- You paid off a loan?<\/span>
\n<\/span><\/li>\n<\/ul>\nCan you remember any of these scenarios? \u00a0Do you know a memory that\u2019s more important? \u00a0Let me tell you, it\u2019s remembering when you didn’t know something you really needed to know, but you didn’t know at the time. \u00a0This is the purpose for this post. \u00a0<\/span>
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\n<\/span>“Net worth” is one of those. \u00a0It’s the indicator that will tell you if you’re better off or worse off than you think. \u00a0However, without knowing your “net worth”, how would you know where you stand financially? \u00a0This stuff isn’t something that’s taught practically in school and there are very few courses and classes that will show you how to put it all together.<\/span>\u00a0 Here at kerryAclark.com\/blog<\/a>, we’re all about sharing tips, resources, and practices on how to improve the business of running your life. \u00a0<\/span>
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\n<\/span>Your Family’s Net Worth<\/strong>
\n<\/span>Before I continue, remember this post is part of a series called “The 5 Basic Financial Categories<\/a>“.<\/span>\u00a0 These categories<\/a> <\/span>are ones that I picked up simply by using an app that I highly recommend called “Mint<\/a>“. \u00a0[Side-note: I’m not currently receiving any royalties or kickbacks from Mint.com<\/a> for my promoting the app.] \u00a0We simply want you to see how easy it can be to better manage what you have financially. <\/span>
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\n<\/span>Knowing the 5 basic financial categories<\/a> is the key to calculating your “net worth”. \u00a0See the illustrations below.\u00a0<\/span><\/p>\n![\"\"](\"https:\/\/i0.wp.com\/kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180216-TIF-SM-NET-WORTH-400x400.png?resize=400%2C400\")
Assets minus debts yield “net worth”. \u00a0The question is whether or not your “net worth” is positive or negative? \u00a0So let’s review your assets. \u00a0Assets are simply the cash<\/a>, investments<\/a> and property<\/a> that you possess. While debts equal your credit card balance<\/a> plus your loan balances<\/a>. \u00a0In essence, “net worth” is what you own<\/span> minus what you owe<\/span>. \u00a0When your “net worth” is positive, you’re in relatively good financial condition. \u00a0When it’s negative, you’re in trouble.<\/span> \u00a0The key to staying out of trouble is to monitor your worth regularly and that’s where Mint<\/a> comes in and does a great job.<\/span>
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\n<\/span>Enough about Mint<\/a>. \u00a0Notice that “net worth” has very little to do with your recurring bills, the stuff you pay out regularly. \u00a0Because of this blind spot, we make big mistakes when evaluating our finances and poor decisions. \u00a0When we’re negative, it simply means we never have enough to cover what we owe and will never be able to pay all the expenses that come our way. \u00a0<\/span>
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\n<\/span>BTW – Pamela and I learned this concept the hard way. \u00a0We went through all the financial woes that having a negative “net worth” brings. \u00a0Once we began to improve this, our finances and even our ability to pay bills improved.<\/span>
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\n<\/span>Today is Friday!<\/span>
\n<\/span>In this post, our goal is to give you a simple definition of calculating your “net worth” and show you why it’s critical to having financial success for your life, your business. \u00a0Leave a comment below<\/strong> if you have questions.<\/span><\/p>\n - Your credit card payments were just too much?<\/span><\/li>\n
![\"\"](\"https:\/\/i0.wp.com\/kerryaclark.com\/blog\/wp-content\/uploads\/2017\/04\/Family-Plan-Cover-e1493399146525.png?resize=115%2C149\")
<\/a> is available now!