Net Worth is a foggy concept for many people and a trophy for others. While managing your net worth may be an activity that’s at the end of your to-do list (it if makes the list at all), it is an often forgotten jewel that can change everything.
- It gives you negotiating power.
- It can bring respect among your peers.
- Valuing your net worth is an attitude that keeps you guarded against foolish spending.
- It helps you maintain an awareness of money-making opportunities.
- If gives you the resources to take advantage of money-making opportunities.
- It helps you avoid a quicksand career that’s takes you down and undervalues your ability.
- It reminds you to keep your resume growing and stay open for new directions.
- It helps you avoid stagnation.
- It protects your purchasing ability.
- It’s wise.
A well-managed net worth can influence your entire life and your legacy!
Net worth is the value of all assets, minus the total of all liabilities. Put another way, net worth is what is owned minus what is owed. Why is net worth important? Because it’s easy to feel like you are doing well financially when you have a nice home, automobiles, clothes, and other material possessions. But if you carry high credit balances, spend most of what you earn, and save little, you may not be worth what you think.
Here’s another way to look at it. If you lost your ability to earn money through work and career, what else do you have in place that would maintain your lifestyle? How long would you be able to honor your financial commitments?
We encourage you to measure your financial success by how much money you keep, give, or invest, instead of how much you spend.
Recent trends show poverty levels increasing among retirees because they simply don’t have enough money to maintain their longevity. Managing net worth can solve that problem.
Calculate your net worth. If it’s zero for now, that’s OK, because today is a new opportunity to start changing! Consider a plan like Rediscover, and Do You Know Your Money Numbers from our own, Money on Track. Begin to value keeping more money than you spend.
Plan for a successful future with enough money to live the lifestyle that you enjoy!
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