Do You Know Where You Stand?

I trust that this will find you well and enjoying life.

I have a question for you and I want an honest answer. Do you know where you stand financially at any given point in time? To be more specific, do you know within a few thousand dollars what your assets are worth? Do you know in detail what you own? Are you aware of what your total liabilities are, in other words the total of what you owe? How much do you save annually between retirement accounts, cash value life insurance and other non retirement investments and savings? In other words how much of what you make do you keep?

From time to time you see or hear me make the statement that knowledge is power. I can’t think of a better application for that old adage than this discussion. There is tremendous opportunity and benefit in knowing where you are and being satisfied with where you stand financially. I’m talking about having a formal time and process when you take the time to invest in yourself, sit down and put a pencil to writing down where you are financially. The benefits of this are many. They may include satisfaction, dissatisfaction, motivation, regret or peace of mind to name a few. The power of awareness can’t be spoken of enough.

I recommend a formal, annual point in time. Such as your birthday, an anniversary or a holiday to prompt you to remember to access and reflect on your position. Write it out. It’s a pretty simple process. A statement of net worth includes a list of liabilities on one side of the page, assets on the other side and the difference between the two, which is net worth. It’s also an ideal time to reflect on the reality of how you can be more effective financially or to make financial goals for the coming year. I can’t stress enough the power of writing financial goals down.

Knowing where you are and where you stand is a huge factor in your getting to where you want to be. It’s like regular physical exercise; you really can’t measure the overall benefit of it day to day, but over time it’s a life changer.

If we can help in any way with this information or anything else related to retirement don’t hesitate to contact us.

Best regards,

Jeff Christian CFP, CRPC

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