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.
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.
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
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.