Do you know your own net worth? Want to truly start taking control of your finances?
It all starts with understanding the mentioned above net worth and cash flow. In this episode of I’ve Heard Worse, Sara McCullough breaks down why these two elements are crucial for your financial health. By being proactive in tracking your net worth and cash flow, you can avoid costly mistakes and make smarter decisions for your future. The more you know about your financial situation, the better equipped you'll be to take control and plan for long-term success.
Key Takeaways:
Net Worth Defined: Your net worth is the difference between what you own (assets) and what you owe (debts). It’s your financial snapshot at any given time.
Calculate Your Net Worth: List all assets (e.g., house, savings) and debts (e.g., mortgages, loans) to find your net worth. Keep it simple—don’t overthink it.
Cash Flow is Key: Regular money coming in and going out is just as important as your net worth. A tight cash flow can hurt even a high net worth.
Know Your Financial Risks: High debt or dependence on home equity can create financial trouble, even with assets like real estate.
Take Action: Review your net worth annually, understand how your finances connect, and track both net worth and cash flow to make better financial decisions.
Resources
Sara McCullough on Web | LinkedIn | Email | Instagram
Organize Your Financials - with 45 days free trial period
