Pillars of Wisdom

Think trusting the truth is easy?

Jump on those bathroom scales. That simple “in your face” exercise shines an immediate spotlight on the truth you can’t ignore. Any remnant of denial is eliminated. Suddenly and painfully you realize compound interest applies to chocolate too.

Take a Hard Look at Your Debts. Add up everything you owe including credit card debt, car loans, college expenses, and mortgage. Now add up all your assets including cash (checking-savings-cds), realistic equity in your home, cash value life insurance policies, and all retirement accounts. Subtract your debts from your assets. This is your net worth and immediately shows you where you stand financially.  If you’ve been living with the illusion of wealth, reality will quickly set in.

“God grant me to accept the things I cannot change, the courage to change the things I can, and the wisdom to know the difference.” Niebuhr, The Prayer of Serenity

Wait a minute, you’re not wise yet. The pillars of wisdom are based on a foundation of strength, understanding, and focused action.

Information and facing the truth is the first step.

Now use that information to become knowledgeable about your options, concepts, and rules that are available.

Wisdom is figuring out how that knowledge fits your unique circumstances.

Trust the truth.

Make wise life choices for you and your loved ones based on your personal priorities.

Have questions? Feel free to comment below.

Related Post:  See the Trust the Truth – Shift Happens Video that we posted in 2007.

Do you have more bills than money at the end of the month? Do you wonder where your money disappeared? Are you afraid to open your credit card statements for fear of what you will find? When you do, are you shocked by how much you owe, knowing there must be a mistake?

The number one money mistake people make is also the easiest money mistake to fix. Awareness.

Awareness is the first principle of successful living and is the foundation for building a strong, secure financial future.

Money affects every facet of your life. Every single life transition (changes in career, health, marriage, retirement, inheritance) impacts your money and your future.

Not being aware of exactly how much you owe, what you have in available savings, what interest rate you are paying or receiving, or your life priorities, puts you at a huge disadvantage.

Let’s fix that. Right now.

How to Get Started on the Path to Financial Peace

Time for a wake up call.

First Step: Add up all your debts. Everything – credit cards, mortgage, auto loans, college loans, home equity line of credit,  any personal loans. Use actual balances, not monthly payments, to determine debt.

Second Step: Add up all assets. Equity in your home, retirement accounts including IRA’s, 401k and 403b, PSP, etc., bank accounts such as checking, savings, money market, cds, value of auto for what you could reasonably sell it for.

Third Step: Subtract debts from assets.  This is your net worth.

Determining your net worth is a valuable exercise in awareness and should be calculated every year.  If your net worth is not increasing from year to year, your future is in jeopardy.

Want another eye opener?  Look at your annual social security statement from a new perspective. Add up all the reported money you have made in your lifetime.  Where has it gone?  When you realize how much money has passed through your hands, you just may realize it is time to take control.

Awareness – The Key to Success!

Next:  Money Mistake #2 Payment vs. Cost