Sunday, 10 May 2015


Calculate your net worth in money. Get a number and know where you are financially.

The first step is easy. Count all money in bank accounts, funds, piggy-banks and wallets. These are your assets.
Count all debt for house, studies, cars or private loans and credits. These are your debts. Include everything.

Take your assets and subtract your debts. Is that a negative number? It does not matter, this is your financial truth. Is it a positive number? Well done, you are in minority of the developed world of being solvent. Maybe you do not have liquidity, but that is usually, not always, only a short term problem.

What ever this number is, this is your net worth

Don't bother with the value of items you have debt for. They are not an asset until you have paid the debt, not even the value exceeding the debt.

The same goes for all physical items, including diamonds, cars, houses, horses and collections. Call my old fashioned, but as long as you just own it, or use that car and live in that house, they are worth nothing.

When the net worth is calculated and it is positive, pat yourself on the back. You are rich!
If it is negative, there is not necessarily time to be anxious, as long as you have some income and can get more.

Now take a break and only go on when you feel ready. Be kind to yourself and enjoy everything you own.

Yes, thank you, weekend was lovelies. The brides were happy and it only rained during the night.

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