Be Healthy w/ Davis is dedicated to tips and tricks to becoming healthy in the 3 aspects of our life that matter most: Our Physical Health, Our Mental Health, and Our Financial Health. Thanks for watching!
Friday's Financial Fitness
Subject: How calculating your net worth will help you achieve your life goals down the road.
If you have any questions about the subject, PLEASE ASK! I'm always happy to come back and answer the questions and reply to the comments.
Net Worth is defined as assets minus liabilities. soo...
Add your assets
Subtract your liabilities
The difference is your New Worth. Some people have positive, many people have negative.
What’s that all mean? And why do I care?
1 - Figure out your net worth
Helps you find where your money is … both positive and negative
Helps you visualize what you actually have
Whatever assets and liabilities you put in your net worth at the start need to be accounted for in the future
2 - pay yourself first
Don’t feel like you can save anything? Start with 1%. (Thank you Paula P with the Afford Anything Podcast!!! I love this.)
Make a plan to increase this amount over time.
3 - use that payment to optimize its effect on your net worth
Need to figure out the interest rate you are paying in order to make this happen
In general, I believe it’s best to pay off any debt that’s over 5% interest rate before you start investing in anything else. Guaranteed return of 5% on your money.