Know your net worth….what does this mean?
Knowing your net worth includes adding in super balances into your overall asset position.
It’s simply, what you have in $ value terms, including super balances, minus what you owe!
If you owe more than you own, start working to rectify this FIRST and FOREMOST. You may want to engage with a company such as mybudget.com.au to assist with reducing the amount you owe.
Knowing what you own, what you owe and what your total net worth is, including superannuation is extremely important. Once you know what you have, work out how you are going to improve this each year and by how much. Like a company has to increase their revenue by x% each year, so too should you.
Yearn for growth and development
Personally people forget this, but professionally there seems to be a real push to make more and be more at work, forgetting that if you make more… you will inevitably spend more too.
There is a correlation between how much you earn as a % and how much you spend. If you get a raise, your spending often increases too. This is a VITAL MISTAKE we make that stops us short of creating the wealth life we deserve and love.
Set a budget, know your surplus and your % increase goal. Set aside savings and investment money and then only set aside things for indulgences.
You’ll soon be on track to achieving those goals and setting new and bigger ones each year and each pay increase.
The joy of earning it is to get to spend it – but how much is the key to long-term wealth building success.
Believe me, indulgence is important and part of self-love and self-worth but being wise and careful with these indulgences is more worthy.