Forget Netflix and Chill, What's your Net-Net-Net Worth?

(𝗔𝗻𝘆𝘁𝗶𝗺𝗲 𝘄𝗲 𝗰𝗮𝗻 𝗶𝗻𝗰𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗮 𝗗𝗿𝗮𝗸𝗲 𝗹𝘆𝗿𝗶𝗰, 𝘄𝗲 𝗱𝗼!)

Regardless of your age, your financial future is (reasonably) predictable. Your net worth is your financial scorecard. Having a high net worth does not make you a better person, nor necessarily does it mean you are happier, but it is a good 'check-up' on your financial health.

𝙽𝚎𝚝 𝚠𝚘𝚛𝚝𝚑 = 𝚏𝚒𝚡𝚎𝚍 𝚊𝚜𝚜𝚎𝚝𝚜 + 𝚕𝚒𝚚𝚞𝚒𝚍 𝚊𝚜𝚜𝚎𝚝𝚜 – 𝚕𝚒𝚊𝚋𝚒𝚕𝚒𝚝𝚒𝚎𝚜

In other words…

Your score = house, land, businesses you own **plus** your investments and cash **minus** the money you owe others

🔹𝗙𝗶𝘅𝗲𝗱 𝗮𝘀𝘀𝗲𝘁𝘀 (non-liquid assets), refers to things that you own that could not be sold within three days if you needed to. Your house, the ownership of your own business, vacation properties, etc.

🔹𝗟𝗶𝗾𝘂𝗶𝗱 𝗮𝘀𝘀𝗲𝘁𝘀 investments and cash balances – anything that could be sold and turned into cash (that isn’t cash already).

🔹𝗟𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 money you owe other people or institutions: your mortgage, your credit cards, line of credit, etc.

Understanding these terms is step one of creating a financial plan. If you are interested in step 2️⃣- hit 👏 us 👏 up!