Cashtoons

Knowing where you are is comforting

November 19, 2021

So, let’s say you did it: you have a sheet showing your net worth. Now what? How is this useful?

Well, first…

  1. Nothing is scarier than the unknown. Being in the dark, leaves us fearing what we imagine.

dark

Shedding light on the numbers, and seeing where you are financially is a lot more comforting than you anticipate!

look at numbers in the light

  1. You can celebrate your accomplishments!

celebrate

If you can’t see where you are, it will be hard to see how far you have come a year from now.

  1. In our reptile brains…

animal brain

Humans often experience money saved/invested as a loss, because it has left the pot where we can spend it today.

Seeing your net worth shows all the gains you’ve made! Watching your “Vacation in Tahiti Fund” swell, will make you want to skip lunch out and pack a sandwich.

vacation

  1. Makes communication in relationships easier, especially if you don’t like talking about money or individual purchases.

looking at finances together

It is a fast way to get a snapshot of the big picture.

hugging dollars

Now that you have your net worth, and maybe some goals for the next year, put it away. In a year you can check again and see how much closer you are to your goals!

map you are here

sources

https://www.nerdwallet.com/article/finance/net-worth-calculator

https://www.investopedia.com/articles/pf/13/importance-of-knowing-your-net-worth.asp

Why Didn’t They Teach Me This In School by Gary Siegel

The Boglehead’s Guide to Investing, 2nd Edition by Taylor Larimore, Mel Lindauer, Michael LeBoeuf


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