Many people ask our Austin financial coach why they should determine their Net Worth.
Your Net Worth is a quick and easy way to see how well you are doing financially. Though you might not like the result, it may also give you the boost needed to get serious about your money.
We might envy the person who lives in a cool condo near the lake (actually a river) in downtown Austin. They drive a Tesla and commute via the MoPac toll road to a well-paying, hip tech job near the Domain. Best of all, they only shop at Whole Foods on Lamar Blvd. What’s not to like?
Lifestyles can be deceiving. Just ask our Austin Money Coach!
We have had clients in their 50s who live in grand houses, in the best neighborhoods, with two new cars in their large garage who have a Net Worth of -$50,000. That is not a good foundation for a couple 15 years from retirement!
Here is an easy way to find your Net Worth:
Imagine if you sold everything you own for cash: your home, your car, your furniture, your clothes, your dishes, your lawn mower and even your iPhone. Everything. You will then have a large amount of cash, called “Total Cash.”
Next, list all your debts. The amount still owed on your house, car, furniture, school loans, credit cards, home equity loan, etc. Add all your debts and obtain your “Total Debt.”
To find your Net Worth, subtract your Total Debt from Total Cash. Therefore:
Net Worth = Total Cash – Total Debt
This is the first exercise Capital Budget Strategies, LLC, Austin’s best financial coach, completes with our clients. Many are surprised when their Net Worth is a negative number.
Need help with your finances?
For only $149, Capital Budget Strategies, LLC, Austin’s best financial coach, will determine your Net Worth, analyze your spending, set up a Household Monthly Budget, an Emergency Fund, a Snowball Debt Repayment Plan and even give you an idea how well you are doing saving for retirement.
Our Austin Financial Coach can meet at your office, your home or our home-office. We can meet you during the day, in the evening and even on weekends.
Give us approximately 4 hours with our Austin Financial Coach and start your journey to financial security.
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