Figuring Out Where You Are Right Now

Thanks for hanging in there with me on my short absence. My mom is doing better and things have stabilized for now.

This post will be a continuation of the previous post titled How Do I Get a Handle On My Money. In this previous post I talked about what FI means, how to calculate your FI number and then gave you 2 assignments.

  1. Add up all you debt (I mean ALL of it)
  2. Make a list of the 10 things that make you happy

If you haven’t done these 2 things yet, stop here and do them now.

Your “10 Things” List

Were there any surprises on your “10 Things” list? Did you have a hard time making the list to begin with? You may not think you deserve to be happy or that happiness is just not within your reach. I want to tell you that these ideas are false. You can be happy.

I’m using the term happy, but really, this is joy…joy in the Lord. I’ll write about that in a future post. God gives us all we have and His desire is for you to experience joy.

May the God of hope fill you with all joy and peace in believing, so that by the power of the Holy Spirit you may abound in hope.

Romans 15:13

And, the idea that happiness is not within your reach is also false. In the next few months, we will work through all the steps you’ll need to get your finances on track and be able to tackle that “10 Things” list!

So, how about surprises on your list. You might have discovered some interesting things about yourself or your spouse. One concept that may have appeared is, not everything on your list requires money or at least not large amounts of money. You may have discovered you can be content and intentional with life and relationships and sometimes, that doesn’t cost anything!

Now, let’s put that debt number to work. We’re going to create a Net Worth Statement. This is a simple statement that lists all your Assets and Liabilities. Assets are what you Own and Liabilities are what you Owe. The difference between the total assets and total liabilities is Net Worth.

Why do a Net Worth Statement

A Net Worth Statement gives you a snapshot of your financial position. This information is useful in creating a financial plan or understanding more about your financial health. I know many people who don’t know how much they owe on their mortgage, how much they have in savings or even where some of their assets are. Don’t be one of those! Be informed about your finances.

How to Create a Net Worth Statement

A Net Worth Statement is easy to create. This can be done with a blank sheet of paper and a pencil or with a spreadsheet. If you are doing this on paper, simply draw a line down the middle of the page, title one column Assets and the other column Liabilities. List everything you own in the Asset column and everything you owe on the Liability column.

You’ll need to gather information about what you own, such as the value of your house and cars, similar to how you gathered all your debts earlier. I had you start with the debts or what you owe first because those are usually more time consuming and it’s a more emotional exercise.

If you are a spreadsheet person, you can create your statement with a spreadsheet similar to the one below. I have created a sample spreadsheet that will give you an idea of the categories you might need. Even if you are creating this on paper, look at the categories for ideas of the kinds of numbers you’ll need to gather.

There are many Net Worth spreadsheets available online. You can use this one or find another that fits your style better. Remember, one size does not fit all!

Plug in all your numbers or list them on your paper. When you are finished, add up the Asset column and then add up the Liability column. Take the total Liabilities and subtract them from the total Assets. (or let the spreadsheet do the math for you).

Is your Net Worth number positive or negative. If positive, this is your Total Net Worth today. If the number is negative, we’ve got some work to do!

This is my Sample Net Worth Statement Spreadsheet. If you would like to use mine, click the link below the picture of the spreadsheet, save a new copy for yourself and you are ready to go.

Assignment and Key Takeaway

  1. Assignment – Gather all your financial data and create you very first Net Worth Statement. If you already have one, make sure it’s up to date.
  2. Takeaway – Be informed about your finances. Don’t depend on someone else to protect and track your money.

Merry Christmas from Started At 50

I want to wish everyone a Merry Christmas from Stephen and I here at Started At 50. We have had an amazing 2019 and are looking forward to the new year and new blessings from our Heavenly Father. I hope Christmas finds you hopeful and expectant for what blessings are to come.

Thank you for all your support and encouragement over the last few months.

I want to leave you with a few of the my favorite Christmas songs.

Enjoy and Merry Christmas

I Heard the Bells On Christmas Day

Mary Did You Know

Little Drummer Boy/Peace on Earth

Hallelujah

Life Happens

This is just a short note to let everyone know I’ve had a family issue come up and it will be some time before I post again.

I am solely responsible for my 98 year old mom. She lives back in Texas and, as you can image, her health is a challenge at times. She’s actually doing great for a 98 year old, but as my nurse friend said, at this point there’s no cushion. That is true for their physical state as well as their mental state.

She is recovering and I hope to be back home in a few days. Right now we are navigating what the “new normal” is. I appreciate your prayers and the support I’ve already felt from my FB family.

I’m sure I’m not the only one here with aging parents. In fact, the blog post I was working on when this happened last week was about our aging family and our own aging. I guess the Lord gave me some new material! These are topics that a lot of us are dealing with and, hopefully, we can all learn from each other.

Thanks for your patience and I’ll be back soon.

God is our refuge and strength, a very present help in trouble. Therefore, we will not fear though the earth gives way, though the mountains be moved into the heart of the sea, though its waters roar and foam, though the mountains tremble at its swelling.

There is a river whose streams make glad the city of God, the holy habitation of the Most High. God is in the midst of her; she will not be moved; God will help her when morning dawns. The nations rage, the kingdoms totter; he utters his voice, the earth melts. The Lord of hosts is with us, the God of Jacob is our fortress.

Come, behold the works of the Lord, how he has brought desolations on the earth. He makes war cease to the end of the earth; he breaks the bow and shatters the spear; he burns the chariots with fire. “Be still, and know that I am God. I will be exalted among the nations, I will be exalted in the earth!” The Lord of hosts is with us, the God of Jacob is our fortress.

Psalm 46