There are levels to this personal finance game. After getting out of debt, which you should take sufficient and ample time to CELEBRATE, it is only natural to start wondering what’s next on the financial progress ladder. Once you’ve zeroed out your debt (except for the mortgage), a good next step is to start growing your wealth (net worth).
Net worth is the measure of the wealth of an entity, person, or corporation. Simply, net worth is defined as the difference between assets and liabilities. It is an important metric to gauge a person’s financial health and it provides a snapshot of the current financial position. – Investopedia
We’ve talked a lot about “net worth” on the podcast. Now we’ve found a simple calculator from NerdWallet that can help you quickly estimate your net worth in just a few minutes. Just fill out this automated form.
The Average American Net Worth is $68,828
Paying off debt only gets you back to broke. – ChooseFI
Debt is a major roadblock to building wealth (net worth). It’s hard to imagine a future filled with “financial freedom” when debt is still blocking your view. This is why we’ve spent so many years focusing on mastering the basics: budgeting, making money, saving money, and coming up with a sound financial plan. Recently, we’ve added ‘build wealth’ to our mission statement.
These charts show we have a long way to go and a daunting challenge ahead of us. As with any journey, the first step is acknowledging the problem. But, we don’t want to stop there. We want to be a part of the solution.
Walt Whitman spoke of those who benefit from the shade of trees planted by generations before them. We’re ready to plant the seeds and reap what we sow. You will see more of Rich and I doing our part to make strides to mentor, teach, develop, share our stories and pay it forward. Our goal is to help men and women who look like us improve their financial literacy, grow comfortable discussing and managing their personal finances, and get a head start on their own freedom chase.
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