How to Assess Your Current Financial Situation

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Creating wealth begins with an accurate assessment of your financial situation. Here, we help you understand your real net worth and how  that is the first step in getting to where you want to be financially.

Creating wealth begins with an accurate assessment of your financial situation. Here, we help you understand your real net worth and how that is the first step in getting to where you want to be financially.

In this episode:

  • Importance of a current assessment [1:00]

  • Where we are in terms of what we have vs what we owe [7:00]

  • Next thing we need to determine is a budget [10:30]

  • The importance of understanding changing your financial situation is a process [13:00]

  • How debt creates more debt [16:00]

  • How to start your net worth assessment and budget for your house [17:00]

  • Determining your car’s true worth and cost to you [19:00]

  • Maintenance on a vehicle is not an emergency and requires a budget [22:30]

  • Factoring in bank account and credit card debt [23:30]

  • How to determine worth of household goods you purchase with a credit card [25:00]

  • Determining the worth of “toys” and gear [27:30]

  • Determining the “value” of student loan debt [30:30]

  • What we owe, what we have tells us where we are today is crucial information [34:00]

  • 25% of monthly income generally goes to taxes [35:00]

  • Other line items to add to your monthly budget [36:45]

  • Average household credit card balance of $6700 [38:00]

  • 10% of income generally goes to student loan debt on average [39:30]

  • Calculating food costs [40:00]

  • Hidden bills to consider [42:00]

  • Ideas to reduce expenses or make more money [45:00]

  • Strategies to employ begin with an assessment and a monthly budget [47:00]

  • Why paying cash is a good way to save money [51:00]

  • How journaling every transaction for a month creates consciousness around spending [52:00]

  • What do you need to do to get to where you want to be? [55:00]

  • Creating wealth begins with a real assessment of your situation [59:00]

Resources:

Current Assessment Worksheet

Sample Bank Personal Financial Assessment