As a coach I often ask my clients to track their net worth. There is something gratifying about seeing the impact paying down debt, saving, and investing has on your personal net worth. You’d be surprised how small changes make large impacts. In addition, when you’re just getting started it isn’t very much fun. You may be paying down debt and you don’t really get to see the fruits of your labor unless you’ve committed to tracking it. Watching how paying down the debt impacts your overall net worth is often enough motivation to continue down the path of building wealth.
For those that take on the challenge of tracking on a regular basis it eventually becomes a game. Oftentimes, my clients will become hyper focused on where every single penny of their income goes because they want to invest as much as possible to grow their wealth. Decisions we all make on a daily basis all impact our net worth rather we want to admit it or not. Things like going out to eat or eat at home, use the coupons or don’t take the time to clip them, buy the new car or drive the old one. When you’ve turned wealth building into a game, the $2 cheeseburger you didn’t eat a few times per week turns into a rental property or an investment into an index fund over a period of time. Which brings me to the photo in this Thursday Thoughts. If you’ve read this far I have to imagine you’ve asked yourself what the heck does this easel have to do with building wealth and I’d be happy to connect the dots. If you watched Mega Camp a few weeks ago it’s likely you remember this easel from the “main stage” conversations. This easel happens to belong to Gary Keller. You see, when you’re playing the game of building wealth you’re constantly looking at things as either an asset or a liability and you do whatever you can to avoid taking on additional liabilities. With that said, when Gary was faced with the decision of purchasing a $20 easel from Office Depot or an antique French easel which appreciates in value and he can sell for profit when he’s done using it he opts to purchase the fancy French easel. I guess he practices what he preaches.
Are you tracking your net worth? Are you so focused on where your money is going that you can find a way to take an ordinary everyday purchase and turn it into an asset to increase your net worth?
If you’d like a copy of our net worth tracking spreadsheet simply reply to this email and I’ll be sure to get you a copy.