Check your net worth.
Celebrities aren’t the only ones with a net worth, you have a net worth too! As you begin your personal finance journey, start with calculating your net worth. When you calculate your net worth it gives you a view of your financial picture, which helps guide your financial goals and things you may want to work on in your finances. Now when you calculate your net worth, don’t be discouraged by the numbers: be inspired! Consider the numbers to be an informant: simply there to report information.
Your net worth is a basic math problem of what you owe minus what you own. Start with making a list of your assets. How much money do you have in your savings? How much money do you have invested? Look at your numbers from all accounts even from your place of employment if you have retirement accounts there, and add up the numbers. Next, make a list of your debt. Who do you owe? Think about student loans, credit card debt, car loans, etc. What is your total? After totaling your assets and liabilities, set up the equation: assets- liabilities = net worth.
In month one and month six of The Responsible Homegirl Planner, I include two pages titled “Where is my Money?” to help you gauge how your finances look at the start of your journey vs. 6 months later. Look at the templates below.
After completing this activity, reflect for a moment:
How do you feel after calculating your net worth?
What did you learn?
What would you like to work on moving forward?
Keep track of your net worth as you budget your money, earn more, and pay off debt. It’s a great benchmark to continue working towards owning more than we owe! For my girlies out there with more debt than you’d like, specifically high-interest credit card debt, read these next sentences slowly and through a lens of love. Credit card debt comes from a lack of discipline, not being prepared for an emergency, and/ or overconfidence in ourselves to pay the money back promptly to avoid interest. As your Responsible Homegirl, I want to encourage you to take accountability for where you are financially because the numbers are a picture of your choices. The good news is there are things you can do, and you don’t have to do it alone! Let’s get rid of this credit card debt together and increase our net worth one step at a time. The journey begins with creating a plan on payday so if you haven’t ordered The Responsible Homegirl Planner, yet…go grab one! One year of financial discipline can change a lot for you!
