Assets – liabilities = net wealth.
You need to know if you’re moving in the right direction, or if you’re going backwards. Maybe you’re just treading water, and not moving in either direction.
You won’t know unless you measure it.
Companies do this on a regular basis. One report shows how much profit or loss they made during a period. Another report shows their net asset position.
Their net wealth.
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You can use one of the online tools discussed in the previous chapter. Or you can use a spreadsheet, or even an old-fashioned notebook and a pen.
List your house, car and jewellery at cost price. The car will decrease in value over time, but don’t worry about that yet. Your big screen TV and sound system are not real assets for this exercise. Sorry.
Then list your bank accounts and investments (once you have some), showing current balances at the end of the month. Everything listed so far is an asset.
Under those amounts, list all your debt, showing current balances at the same date.
Total both groups of numbers. Subtract your total debt from your total assets. The net result is your net wealth.
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Join me at the last book fair for 2022, on 3/12/22 (this Saturday) in Edenvale.
I’ll be selling my books, Shorty’s 2 books of poetry, and some Marvel/DC/other graphic novels.
www.facebook.com/BurningRosesNovel/events
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Stop living from salary to salary. Achieve Financial Independence. Retire Early. Join the FIRE movement igniting the world.
Follow these weekly posts for solid advice on how to escape the rat race, covering material contained in Hard Money.
This is no get-rich-quick scheme. It won’t be easy. That’s why it’s called Hard Money.
Work while they sleep. Learn while they party. Save while they spend. Then live like they dream.
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Anyone in Johannesburg who would like a signed copy (of any of my books, or Shorty’s Poems) can have one delivered to their door by Big Bad Wolf Motorcycle Maniac Deliveries. No charge for delivery.
Or have them delivered anywhere in South Africa via Bakgat Books. https://bakgatbooks.co.za/all-stores/burning-books/
Also available in Edenvale from Inner Journeys bookstore.
www.facebook.com/InnerJourneysdnr
Or from Profound Books in Bramley.
www.facebook.com/Profoundbooks
And they’ll always be available on Amazon.
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