Are you tired of being clueless with money? Take your power back with money. Learn five simple steps to see where you stand with money!
Why You Need to See Where You Stand with Money (Truth Hurts!)
First, here’s a quick warning. As Lizzo said, truth hurts! The process of seeing where you stand with money will hurt. It’s hard to step out of denial and see your finances. You’re probably wondering, why bother?
Let’s take the genius from Lizzo’s song and apply the knowledge bombs to money.
Lyrics from “Truth Hurts”
"I just took a DNA test, turns out I'm 100% that bitch Even when I'm crying crazy Yeah, I got boy problems, that's the human in me Bling bling, then I solve 'em, that's the goddess in me… You're supposed to hold me down But you're holding me back"
How these lyrics can inspire you to see where you stand with money.
In the first verse, Lizzo explains you can be a bad b***h even when everything’s falling apart. Seeing where you stand with money is an empowering move, period! You might have money problems, but you’re only human! Most people do. It’s solving your money problems that matter.
Money’s supposed to hold you down, not hold you back!
When you see where you stand with money you gain security, stability, and safety in your life. Not knowing where you stand holds you back!
Living in denial with money causes crippling stress and anxiety. It prevents you from doing what you want in life like travel, starting a business, or leaving a toxic relationship.
Five steps to see where you stand with money
In the finance world, the best way to see where you stand with money is to calculate your personal net worth. You can do this on one of the three financial statements, called a Balance Sheet. Or jot down the current value of these five main categories.
Use my FREE downloadable guide to complete these five steps!
1. Retirement and Investing
The first step to see where you stand is to find out the total current value of your retirement and/or investment accounts. Add together the total amount you have in any IRA, 401(k), pension, or brokerage accounts. Don’t forget about old 401(k) accounts from a previous employer too!
2. Emergency Saving
Next see the value of your emergency fund (or what you have now in savings or your bank account). A good financial rule of thumb is to have 3-12 months of expenses saved for a rainy day.
3. Car Value
Go to a site like Kelly Blue Book to get an estimate of your car value. Enter your make, model, and miles, then you’ll see a range of what your car’s currently worth.
4. Home Value
5. Debt
The last step to see where you stand is to find out exactly how much you owe in debt. This is the total amount owed for your car loan, student loan, credit card, payday loan, home loan, ‘I owe you,’ medical debt, etc.
Your debt is known as liabilities, or what you owe.
To calculate your net worth, you’ll take the total amount you own (retirement + savings + car + home) minus what you owe (all your debt).
Stop letting money hold you back! Use these five steps to see where you stand with money.
❤️ Carly
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