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Financial Planning Series Part 3: Determine Your Net Worth and Work On It

Financial Planning Series Part 3: Determine Your Net Worth and Work On It!

Take some time to write down your assets and liabilities – or should it be a wonder if you only have liabilities? Find out and discover through this simple exercise.

You might be surprised to know that if you actually write down all your assets and liabilities, you only got liabilities and an empty asset side. How could that be? Well, if you have been buying gadgets that will lose value through time, maybe you are just piling up liabilities and not assets after all.

Side note: Join our newest Facebook Group: Filipino Financial Freedom Forum. Our mission: #FilipinoFinancialFreedom. Kalayaan!

In Part 1 of the Financial Planning Series, you now know how to create a vision board – it’s like envisioning two points – from where I am now at point A, to where I want to be at point B. In Part 2 of the Financial Planning Series, you’re asked to write down in different areas or life streams action items, goals or any specific activity that will enrich it. For example, if you want a deeper relationship with your family, write down a weekend treat perhaps to Ocean Adventure, short trip to Hongkong, etc.

In this series you will be asked to fill in little boxes like the ones you see above to help identify how much you have and how much you owe. I know some people dread finding this one out, or they dread filling up long, financial statements that look intimidating. But what you see above is an easy picture that will illustrate the figures we need to assess your financial health.

Now get the totals for each column. You know how to do this: subtract the left side figure from the right side figure. Greater than zero means positive value means positive net worth.

Okay, I’ve filled it out. It’s a..

a) oh-so-good financial status! Yipee!
b) err.. flat.. zero or almost..
c) okay so why did you ask me to do it and remind me that it’s negative? I know!

The table above is your current status.
And at the end of the year, I want you to change that figure to the figure you want it to be.

You now have an assessment of where you are now. Let your dream board, and your balanced life grid, drive you to point B.

You can do it. You need to believe you can do it.

Ultimate Newbie Guide to Personal Finance: 
10 Steps to Achieve Filipino Financial Freedom

Practical. Straight to the point. Taglish guide para sa mga baguhan sa investing and financial planning.
To know about this ebook, please visit link here.

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