Financial Freedom Let’s get started!
You have decided that today is the day! The pain of staying the same is greater than the pain of change, so we are ready to make the changes and move towards Financial Freedom. The good news is this website is A Simple Approach to Financial Freedom not the complicated approach. So keep in mind I do not fancy myself as a Financial Guru. I am an ordinary person that did extraordinary things with money by saving and making good decisions. If I can do it, so can you! It is about changing the way you see money. It is all about the daily choices you make on how you spend your money. It is getting you to stop before you spend and ask yourself….Is this purchase a need or a want? You are in control of your financial future. It is crucial you realize where you are today is a result of the choices you made the last few years. If your choices on spending have caused you to be in debt and living paycheck to paycheck then you will have to make changes. This happens with one expense at a time and one day at a time. You will learn to stop spending money you don’t have. The changes will slowly start to provide results of financial freedom and debt free living.
You have to know where you are before you can go where you want to go. Sometimes this is extremely painful so I want to warn you. Just remember, it took years to get in the financial position you are in whether it is good, bad, or ugly so it is going to take time to get out of it. I want you to be prepared for delayed gratification. You just need to start. Let’s do this!
We will start with doing a Net Worth Sheet. A Net Worth Sheet is the value of the individual’s assets minus liabilities. Get out a piece of paper, I promise I will keep this simple. Top middle write: NET WORTH then draw a line vertically down the middle of the page. Far left side at the top put Assets and then on the far right side at the top put Liabilities. List all Assets and their value on the far left side. This includes, home, car, boat, RV, motorcycles, bank accounts, retirement accounts, personal belongings and furnishing, collector items, checking accounts, savings account and any other assets that you have that have value. Then on the liability side you will list all outstanding liabilities. Home loan, credit cards, automobile loans, student loans and whatever else you owe. You get the picture. I bet you are more aware of what you owe than what you own. I want you to be prepared this could get ugly, but you have to know where you are in order to make a plan on where you are going. Most of you may find that once you add up all the assets and minus your liabilities that you have a negative number. Take a deep breath…..It’s OK. We are changing our spending habits so that we can build our net worth. We are going to work on these numbers daily so we can change our financial trajectory.
Here’s an example:
|ROTH IRA||$6000||Macy’s Card||$1,500|
|Total Assets||$369,500.00||Total Liabilities||$338,500.00|
So this example has a Net Worth of $369,500 – $338,500 = $31,000.00.
Net Worth = $31,000.00 This would be a positive Net Worth of $31,000.00
Your Net Worth shows your net economic position. Are you in a good position? Has trading your time for money over the years given you a good economic position? If not, then it is time to change the way you see your money and start building assets for your future passive income. That is what this website is all about. We will show you how to build passive income streams through owning businesses, real estate, and investment portfolios so that you will not have to trade your time for money. We will show you how your money can work for you instead of you working for money. Now that you know where you are, you are ahead of the game and ready to learn. We will have videos and information showing you how to change your financial trajectory. Buckle Up!