Building Financial Health: Your Path to Financial Freedom

​Money. Saving. Investing. Wealth. Debt. Business.
 
Almost half of Americans are just $400 away from financial distress. A flat tire, a cavity, or a bathroom leak can result in having to use a credit card and falling into debt. Many simply don’t have the available cash. My commitment is to ensure that this is not your situation. From Wall Street to the White House, my work has been recognized for making a fundamental financial difference, from multinational corporations to women transitioning off government assistance. So, where do we begin?

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Let’s start with the facts and a simple exercise: identifying your net worth. Remember, your net worth is not your worth as a human being. You are brilliant, resourceful, and amazing beyond words. This exercise is merely about understanding the monetary difference between what you own and what you owe. Figuring out your financial net worth is straightforward, though the first time might take a little more effort.
Step 1: Add up what you own. List the current value of your assets: bank accounts, cash, real estate, jewelry, car, etc. For some items, consider what you would get if you sold them now. The current value of your home or car may be less or more than what you paid for it. Value is dynamic, not static.

Step 2: Add up what you owe. Take a deep breath. This is just your current reality. We’ve got this. Breathe. It is what it is until it’s not. List your liabilities: student loans, car debt, credit cards, consumer debt, the $20 you borrowed from a friend, etc.
 
Step 3: Calculate your net worth. Subtract what you owe from what you own. Own (assets) - Owe (debt) = Net Worth. It may be a positive number, meaning you own more than you owe, or a negative number, meaning you owe more than you own. Either way, well done! This number is your net worth. Remember, it is dynamic and will change over time. I recommend making this a habit by checking it monthly or quarterly. It won’t take much time after the first time and provides a high-level view of your financial health.
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In the next newsletter, we will explore another fundamental step on your path to wealth.
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