Women and Money Mistake #1
April 17, 2007 by Lynn, Clarity Coach
Filed under Money and Meaning
You Don’t Know Where Your Money Goes?
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!
