Day 3 Photo

New to the Live Richer Challenge: Net Worth Edition? Learn more about it HERE.

Missed some of the Challenge tasks? Catch-up then come back…

Day 1: HERE: What does net worth mean?

Day 2: HERE: Why is net worth important?

 

Week 1: A Wealthy Mindset

Today’s Easy Financial Task: Add up all of your liabilities (debt).

How to rock this task:

  • Pull out all of you debt balances (liabilities)
  • Add up your debt

 

Welcome to Day 3 of LRC: Net Worth Edition, Dream Catcher!

So far in this Challenge, we’ve talked about goal setting and what sacrifices may be necessary to increase your net worth.

Today is the day that we take our first step toward determining where you stand.

Woot, woot!

Our task today is simple, but it may take some time.

Be sure to set some time aside today to complete this task because you’ll need your list of liabilities to complete the rest of the tasks this week.

In this step, you’re going to review all of your debts to discover how much you actually owe in total.

Fun times, right? *insert not-so-excited face*

Before you roll up your sleeves for this task, a word of encouragement:

Everyone of us has to start somewhere.

You may be scared out of your mind to uncover exactly how much you owe, but it’s a necessary step in determining your net worth.

After uncovering what’s behind the curtain of your financial life, you can take steps toward financial freedom. The small initial steps will turn into a spring once you get the hang of increasing your net worth.

Always remember…

If you try to avoid addressing your debt like the plague, there’s no way you’ll be able to cure it.

 

A Refresher on Liabilities

Just a reminder — liabilities (debt) is any money that you owe including:

  • Income taxes owed
  • Credit card debt
  • Bank loans
  • Personal loans
  • Auto loans
  • Student loans
  • Hospital bills
  • Home (property) loans **
  • Unpaid bills (utilities, etc.)

List out each one of the liabilities you have on the Your Net Worth worksheet.

You can grab it here. DOWNLOAD THE WORKSHEET.

 

**Let’s Talk About Your Mortgage**

A home loan is most certainly a debt or liability.

But you don’t want to include your entire home as a debt because it’s still technically something of value that you own. For this exercise, include the balance of your home loan in your list of liabilities.

The equity that you have in your home (your home value subtracted by your loan balance) is what you’ll include in the assets section later.

 

List Yo’ Liabilities

If you haven’t yet downloaded the Your Net Worth worksheet, get your’s HERE.

Your task today is to ONLY fill out the liabilities column.

Now’s a good time to check in with your accountability partners to see how they’re doing with this task.

If you have any questions, be sure to leave a comment below.

 

Ready, Set, Go!

Before you set off to work on this task, share what you’re doing today with your tweeps:

Today, I’m listing my liabilities. Day 3: #LiveRicherChallenge #LRCnetworth Click To Tweet

Live richer,

Tiffany

 

You can reach out to me here:

Twitter: @thebudgetnista

Instagram: @thebudgetnista

Facebook: The Budgetnista

Private Forum: Dream Catchers : LIVE RICHER

 

P.S. Don’t forget to get your free Live Richer Challenge: Net Worth Edition Starter Kit. GET IT HERE

P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.

LRC Net Worth Calendar

Want to work through the Live Richer Challenge: Net Worth Edition in a workbook? It’s part of a bestselling series!

Click the link below and get your copy.

  • Nicole Ds John

    Getting my list together now… time to take control of these debts

  • deja gordon

    I have my list done…student loans and auto loan

  • rozykush@yahoo.com

    I Have been dreading this day I cringe at looking at my debt, but someone has to do it so here I go…pray for me y’all

    • Awww! You CAN do it!

    • M Smith

      You are not alone, but at some point we have to bite the bullet, right? I keep telling myself this is my reality and I am going to tackle this. Mind over matter. Let’s do this!

  • Maiesha Lee

    I have an idea of what my total debt is, I’m going to start paying off the smaller ones.

  • Nicole Andrus

    My list is complete. It is amazing how much debt one can be in without even realizing it. It’s good to see everything on paper so I know where to start.

  • Jamie Cheatwood

    List is done. Want to hide under a rock now! But hey, you gotta start somewhere right?!?!

  • Annette Houston

    Will do my list this evening, but I’m not ready 🤦🏾‍♀️

  • Jeanette

    Began doing this last night when I thought about starting the Snowball Debt Repayment Method. Reading Tiffany’s list reminded me to look for my daughter’s unpaid hospital bills and add them to my list of liabilities. Can’t heal unless we clean out the wound.. that’s how I’m looking at this process…

  • Shay Majors-Rivers

    Although, like all of you it pains me to see the damage that I have done to my financial life but I am excited that I am finally about to learn and get it all under control. I am excited about what the future holds with all of the savings I will have after these classes. Thank you Tiffany!

  • Char Bee

    my home mortgage loan is the last of my debt. But 7 years ago it was student loans, car loans, credit card debt totaling 116k. I did the work and the Lord saw me through, paid off 116k in consumer debt in 5 years (with Husbae!). Y’all can do this!! #OneStepAtATime #NetworthBuilding #WeGoFarTogether

  • Katina J Snow

    LIST IS COMPLETE

  • ContinualKnowledge

    I do this every year and while my list gets smaller every year, I’m always kicking myself that I’m always in the same spot every year. The saying goes when you know better you do better. But even with knowing better, I have to want to do better and put the actions in place. But I can say I might be on the way, because I’m working through the steps of this challenge.

  • Beverly Jones

    My two liabilities are auto and school loan.

  • Trici Coleman

    I’m very disappointed in myself with the carefree attitude I’ve taken in the past regarding my finances and credit. Now that I’m 35 years old, I’m paying for it in many ways. However, I’m proud to finally take control of this and make significant strides on improving this part of my life…The things I learn now will empower me and put me in a better financial situation but also help me to educate my children so they do not have to learn the hard way. It’s the gift that keeps on giving…Thank you love for these challenges.

  • Twyla McDonald

    I always keep an estimate in my mind, but looking at the actual’s has me feeling a bit eeyore-ish and in my feelings of how did I let this happen?! Lawd this student loan makes me want to fight! Better days ahead!

  • Maxine Chivers

    I paid off my mortgage in June 2017. I got a zero percent credit card out after that. Now I have paid back the money on that. This year I am using cash and trying to not use my debit card. I will even be using cash during my vacation. I won’t go back into debt.

  • Tiffany Valdez

    I refuse to start beating myself for my bad financial decisions, they were learning lessons of things I will never do again. When you don’t know better you can’t do better until you learn to do better.

  • Jammie

    Finished my list.. feels like a bottomless pit. However remaining optimistic 🙂 Not as much as I thought, mainly student loans but that’s the story of life:(

  • Joyce Humphreys

    Today’s good news is that I know the exact amount of my liabilities now i can start my road to recovery my job is to learn how to tackle it and to not become overwhelmed.I must have a plan of action. and know that taking control of my debt now will bring me financial freedom in the future…..”I Can” “I Know I Can Do This”

  • Ain’t Life Grand

    This part is painful and sad….but I will continue to push up to get myself up out of this debt….wow, it’s real now….

  • joan mickles

    Just completed my list… the only good thing is everything is being paid on time. One negative account which i will be paying off soon. My total debt is 35k which I plan to cut in half by the end of the year.

  • Missy Melton

    Today’s activity is one that I have always run from. TODAY, I am going to FACE MY FEAR and TACKLE this task head on! I am excited about this journey of tackling and conquering my finances!

  • Yolanda Ecklin

    Listed my debts….student loans are the biggest one for me.

  • Adriena Shelton Osborne

    Stressful day but I am excited to start to take control of my debt. I make good money but I haven’t done well at all paying my debt down especially my student loans. Thanks for the direction Tiffany!

  • Lizzyfly F

    This is getting serious now…lol boy oh boy! I’m ready though

  • Traveya Brown

    Done!

  • Jay

    My debt far outweighs my assets, but I’m going to be successful! Thanks Tiffany!

  • Yvonne Livingston

    After looking at all of my liabilities I couldn’t believe how stupid I was to be in debt like this. I was sick to my stomach but I’m glad that I’m beginning to take action!

  • Patty Palmer

    87K, whew! Okay, I’ve said it out loud. Now onto to moving it out of the way. I will do this!

  • Felisha

    Liabilities list complete…time to take action!

  • Lisa Gray

    Whoa 150,000 ..student loan 130,000 .I embrace it .Yes

  • Tiana

    $50,000!! It’s a large number, but I am ready to get rid of it ASAP

  • Lee Hernandez

    I have my list almost done. Question, do we include the regular bills i pay each month same amount for internet, cable lights, cell phone?

    • Ms. SassyDiva

      I ask that very same question, hopefully we can get a response.

      • Lee Hernandez

        hello. is this your first challenge? yes i hope to get a reply. I’m on day 4 this is my first time 🙂

        • Ms. SassyDiva

          Yes, this is my first challenge!

      • Lee Hernandez

        I shared my question on Dream catchers FB discussion page. hopefully i’ll get a reply 🙂

    • Crystal Morgan

      I don’t see how monthly bills should be included. I look at liabilities as a debt owed that you can eventually pay off. You will always have electric, water, phone bills each month forever. I don’t think it makes sense to include them.

      • Crystal Morgan

        Instead I would look at monthly bills to see if they hit the criteria discussed in Day 2 and see if there is a way to reduce them. For example, reducing cable bill by cutting the cord and looking at alternatives.

  • Deborah Ivey

    My liabilities are $279,500

  • Nubia Ajna

    I have the same question as Lee Hernandez regarding including monthly bills in the liabilities list. Even though I read “unpaid bills (utilities, etc.)” noted under the refresher on liabilities sub heading above, I’m wondering if do include that, do I total the amount for the year and list it as one amount? I might move living in an apartment so the amount can potentially change.

  • Adonia Barkley-Flakes

    What stands out for me is the fact that buying something because I can pay for it, doesn’t mean anything if I can’t really afford it! My goal is to decrease my liabilities in 2018 and increase my savings!

  • Josie Johnson

    Time to face the music, but I am super excited for the outcome.

  • Charmaine Glover

    Working on my list, doing this task differently than I did it in the past. I am really up for this challenge. Thanks Tiffany for allowing me to do this over again until I get it right.

  • Charmaine Glover

    Does this include monthly bills, I did see that this question was asked?

    • Crystal Morgan

      I read it to mean unpaid utilities – meaning a balance/overdue.

  • Della Prioleau

    Getting that list done.

  • Natasha

    Task complete! Magic in progress!

  • Renee Ghent

    Getting my list together and ready to take control to build my net worth!

  • Sonia Smith

    I’m grateful for this journey with others. I completed this list some time ago, so this part wasn’t hard for me to do, but it was equally painful because the list hasn’t decreased by much at all. Happy to be on this journey with others. I’m on the right path and I’m looking forward to kissing all of this debt goodbye.

  • Dionne Shaw Bush

    #SpeakOut : ooooookay OMWow‼️ l am facing my “liabilities giant” and crushing them – Victory is mine 🤸🏽‍♂️🤸🏽‍♂️🤸🏽‍♀️🤸🏽‍♀️💥 thanks for your guidance Tiffany ✔️

  • Stacey QueenShea Lawshea

    I have 10,000 just after chapter 7 in 2017 for my home. I am going to get it together. With help from the bugetnista! And continuing to be honest and getting the work done.

  • Jayde Ella

    Like a couple of ladies I am confused as to if regular monthly bills are a liability….if so eek!!

  • Tamere Brown

    My liabilities are $40,000. $30, 000 of it is student loan debt.

  • Faith Delaney

    My list is complete now on to the recovery process!

  • Royal Queenmother Brown

    I’m playing catch-up… My list is done for me and my hubby….pretty steep but we’re gonna get it back under control! Thank you Tiffany @theBudgetnista #DreamCatcher

  • Maiesha Lee

    Im having a little trouble with the car loan dont know how much interest i paid so far, so i may not have a completely accurate amount of liabilities

  • Tamilla Mullings

    I am a little confused. You stated that utilities are liabilities, should we be listing light, water, cable, internet, phone, etc? Self care things like mani-pedi, hair… help me out here, please!

    • Nyla K. Moore

      I’m wondering the same…

  • Starr Pack

    Total Liabilities is $44,000 (2,000 in credit cards and the rest is auto loan and student loan divided equally).

  • Pamela Hudson

    I am getting my list together. I have finally faced my fears of being in debt. I need two partners to hold me up on each side. I go back and forth from New York to Virginia. Thank you, Tiffany and my Dream Catchers!

  • Nicole Garris

    Alittle behind but I’m caught up.
    For people asking about bills. Anything you owe Yes that is debt.

  • Lisa Dent

    🙁 my liabilities were VERY disappointing but I’m glad I now have a number to associate with it. Knowing where I’m starting will help me to see my progress as I get rid of it 🙂

  • Jan Alexander

    This task is a true eye opener. Thank you Tiffany!

  • Shawna-Kaye Lester

    This was such a useful exercise! I have not been able to articulate my feelings about a car… I just kept thinking about insurance, mechanic trips, etc. I will keep remembering “Just because you can put out the *initial money to pay for something doesn’t mean you can afford it.” I will be walking a bit longer :).

  • Crystal Morgan

    I jotted this down as part of Day 1 when we had to calculate our net worth. I only have one liability – that is my mortgage. I made a nice profit of the sale of our house in California so I was able to put 20% down here in Florida and obviously spend alot less. First payment just started this month and I’m already adding a little extra with the auto payments.

  • Livinlife Faithisstrong Pittma

    I have debt as well… I’m taking this challenge to better myself and learn to be a better saver.. My husband and I want to purchase the house we live in, so I started the process of trying to get my student loans lowered.

  • Karen Crawford

    I had to add a line to the worksheet. Of all the liabilities, the student loan debt is my most aggravating because I watched that debt grow from $30,000 to more than double that amount due to interests and deferments! I have always taught in title 1 school and each time I ask for loan forgiveness I’ve been told that my loans are too old!!! HELP!!!

  • Yoos C

    WOW!!! This challenge hurt like hell. I almost started to cry, but I had to pull myself together. Actually writing down and seeing that massive amount of debt I owe is truly terrifying. I feel like I was punched in the gut.

  • Shamika Hartgrove

    Luckily I had a nice head start a few weeks ago. I knew that I had bills to pay but had so much going on I just couldn’t tackle it all at once…so one day I literally called up everyone I owe and got balance and due dates so I can start anew…so happy I did that so now it will be a little easier to do today’s task. Thank you again Tiffany…YOU ROCK🤗

  • Antwenequa Ellis

    List is done, and there is a lot of work to be done as well!!!! If I knew then…. what I knew now….Well let’s say I did, but didn’t act upon it!