52 Simple Ways to Manage Your Money – 8. Gee, That Much?
A Weekly Journal & Workbook to Help You Take Real Control of Your Money
What it Is…
A net worth statement (sometimes called a balance sheet) describes, at a glance, your financial situation at a specific time.
How it helps…
It is an easy tracking tool.
It’s a reality check of what you have, rather than what you think you have.
Provides feedback on your progress.
Key items to look for…
All of your assets.
The ratio between what you own and what you owe.
Don’t overvalue personal possessions. Use “garage sale” prices.
Time …
Two hours or less co set up.
Ongoing, one half an hour to update as needed.
Keys to action…
Prepare a net worth statement. List everything.
Choose a date to do this each year, half-year, month. AVOID January 1st (too much holiday bustle). Try your birthday or the first day of Spring.
Great satisfaction comes from seeing your net worth grow.
Everything you own on one side of the chart, everything you owe on the ocher. The difference is your net worth.
SET IT UP
Start today— even a tiny step.
STEP ON IT
Compare to the previous time period.
STEP ON IT +
Make projections related to budget and to primary goals.
Notice…
Your willingness to do the statement.
Your judgments about your net worth.
Your feelings relating actual net worth to your self-esteem.
But what if…
My net worth goes down?
Check your arithmetic, just in case.
Review your assets. If they have lost value, will they increase again? If not, consider cutting your losses.
Review your debts. Are credit cards out of hand?
Thought primers…
At the thought of reviewing what I own and owe ..
One of the things I might say about my net worth…
At the thought of expanding my income consistently …
If I could have as much money as 1 wanted…
The good thing about keeping my worth where it is might be…
If my actions and net worth were coordinated…
