YOUR NET WORTH –The star that will guide you on your wealthy journey and how to find it
Hey awesome,
Do you know the difference between the Star of David and The Star of Bethlehem?
I discovered the difference together with a big pile of shame at the age of five!
It happened in the tiny space between the Ministers pulpit and the first row of pews in the rural Richmond Village Methodist Church which was teaming with kids dressed in a bizarre assortment of gear - from pajamas to super hero outfits to party dresses - and accompanied by their favorite Christmas gift hastily unwrapped that morning.
It was the kid’s lesson part of the Christmas service, slotted in between a hearty rendition of “Hark! The Herald Angels Sing” and “Away In a Manger” - sung gustily as good Methodists are known to do – and we had been asked to all gather up front to receive our lesson!
As the kids settled down, the Minister leaned over and asked this very important questions….
“What was the name of the star the Three Wise Men followed to find Baby Jesus?”
OMG! 5 years old Ann was beside herself with joy – I knew this!
I had been going to the Jewish nursery school down the road for two years and every Friday we got this star out!
This was mine for the taking and I was going to make my folks proud. My hand shot up like a warthog's tail dashing through the grass and before the minister could take a breath I shouted out – “The Star Of David”.
A stunned silence fell across the congregation and I was delighted at the impact my deep knowledge of these things had on everyone. Then a teenagers’ giggle broke through, starting a flood of chortles which in turn led to the full out collapse of decorum as the entire church burst into laughter.
That was the day I discovered how important it is to know what star you are following…
….and the consequence of getting it wrong.
The star I am talking about in relation to you creating your financial freedom is YOUR NET WORTH and this is what this video is all about!
Before you dive into this video to discover how to calculate your Net Worth we need to get on the same page about what NET WORTH actually actually is and why.
I’m talking about your wealth generating Net Worth.
Not the ridiculous Net Worth calculation done by banks to lend you money and lull you into thinking your financial wellbeing and future is all hunky dory and based on stuff you own!
What you and I are interested in is the Net Worth that can earn income for us – that we can live off – so we have choices!
Go and watch the video to learn more about calculating your wealth generating Net Worth…
So have you calculated your current net worth?
How does it feel knowing this number?
Your net worth number on its own actually doesn’t mean a lot. Yes, it tells you the difference between your wealth generating assets minus your liabilities but how do you know if it is good, bad, or indifferent?
Most importantly, how should you use it to keep you on the path that will take you to your financial freedom?
It is the relative difference in your Net Worth from month to month, whether it is growing or shrinking, and most importantly whether it is getting closer to your Financial Freedom Number that matters.
By tracking what is happening to your Net Worth you can see how all the wealthy actions are contributing (or not) to your wealthy life and your progress on your financial freedom journey.
“Your Net Worth is your ultimate wealth trajectory indicator because virtually every financial move you make will impact your net worth – up or down”
If you raid your investment pots, your assets will reduce and your net worth goes down – A GIANT STEP BACK FROM FREEDOM.
If you blitz some debt, your liabilities go down so your net worth goes up – A GIANT STEP FORWARD TO FREEDOM.
If you go on a spending spree and load up those credit cards, your liabilities have just expanded, and your net worth goes???
Down!!
Yep – you’ve got it.
That’s why:
“Your Net Worth is your guiding star showing you the path you are creating with your day to day money actions.”
Now you know what your wealth generating Net Worth is and why it is so important.
You now know what STAR you should be following to ensure you create and live a truly wealthy life with lots of fun “rich” baubles scattered through it.
And if you are not yet sure on the difference between Rich v Wealthy - go here to get clear.
Big love,
Ann
