New to the Live Richer Challenge: Net Worth Edition? Learn more about it HERE.
Week 1: A Wealthy Mindset
This Week’s Goal: To learn what your net worth is, why it’s important, and how to develop a wealthy mindset.
Today’s Easy Financial Task: What does net worth mean?
How to rock this task:
- Learn the meaning of net worth
- Write goals for growing your net worth
- Speak your desires into existence
Welcome to Day 1 of the LRC: Net Worth Edition, Dream Catcher!
I hope that you’re as excited as I am!
On the very first day (TODAY!), we’re going to tackle the actual meaning of net worth and you’re going to write down your goals.
If you’re unfamiliar with the concept -- don’t be alarmed.
Net worth is a financial term that gets thrown around a lot, but isn’t always defined.
What is Net Worth?
Net worth is the sum of all of your assets subtracted by your liabilities or debts.
Net worth is not to be confused with your income.
Your income is how much money you earn.
Net worth is the value of everything you own (assets) subtracted by your debt (liabilities).
Here’s the equation:
Assets - Liabilities = Net Worth
Remember this equation; We’ll be referencing it many, many times during this Challenge!
Examples of Assets and Liabilities
Cash is an asset, but just one type of asset.
Assets are anything you own that has value including anything that puts money into your pocket such as:
- Stocks and bonds
- Real estate
Now, let’s talk liabilities.
Liabilities are things that you owe other people. Liabilities reduce your net worth. Basically liabilities are anything that takes money out of your pockets.
- Bank loans
- Hospital bills
- Income tax debt
- Credit card debt
- Student loans
- Mortgages and home equity loans
Your Net Worth Goal
Now you know what your net worth is!
Your next step today is to write a goal for this Challenge.
Goal setting is a step that should never, ever be missed.
To attain the level of wealth that you desire, you must have a clear understanding of the goals you’re trying to reach. Your goal should follow these rules:
- Be realistic
- Be a goal that will motivate you
- Be specific and measureable
Here are a few examples:
- I want to increase my net worth by $10,000 by the end of 2018
- I want to decrease my liabilities by $5,000 by January 2018
- I want to go from a negative net worth to a positive net worth by December 2018
Write goals using your goal worksheet below.
Keep this sheet handy.
You’ll be filling out the second part of it (action steps) later in the Challenge!
Say It Loud!
Your last task for the first day is to speak the mission of this Challenge into existence.
There’s an unimaginable amount of power in saying your intentions out loud.
That’s what I want you to do next.
Click, then save/screenshot/download and share this image on your Instagram, Facebook and/or Twitter feeds:
Check in With Your Accountability Partner(s)
Make sure your accountability partner(s) are in the game.
Don’t have one?
Then you have a little more homework to do. Find someone to do this LRC: Net Worth Edition with.
They don’t have to be a financial guru, just someone who’s willing to do the daily task alongside you. Having an accountability partner is one of the ways to increase your likelihood of success.
Remember, you can find accountability partners in our private Dream Catchers: Live Richer Community.
Before you go, leave a comment below.
What is your goal? We all wanna know!
Share what you’re doing during this Challenge with your peeps.
You can reach out to me here:
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.
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.