Expert Contributor
Know What You Have By Joe Morgan, CFP®, CFA, Principal: JWM Wealth Management, LLC
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efore going anywhere, you must understand the tools at your disposal to get there. In our financial lives, these tools can be found on your balance sheet or net worth statement (two terms that mean the same thing). This statement will tell you the resources you currently have that can be used to get where you want to be in your financial life. Sounds simple, but it is important to take your time to fully comprehend the things you own and the amounts you owe. You can start by writing down the value of things you own which are referred to as your assets. Include your house, other properties, savings and investment accounts, as well as any other financial assets (like annuities) that you may have. Don’t include things that you cannot readily turn into cash, like your furniture, heirloom jewelry, or perhaps even your cars. Now, make a separate list of all the things you owe, like your mortgage, home equity line of credit, credit card balances you carry (if any), etc. These should include any debt you intend to pay such as past family borrowings, or even your kids’ student loans if you think you might be the one paying them. Once you add these up, you have the total of what you owe. By subtracting what we owe from what we own, we are left with the total resources we have today that are available to use to get what we want. This is a great bird’s-eye view of determining your net worth to get things started, but let’s take a deeper dive into what you have and what you owe. Join me over on my blog at https:// jwmwealth.com/blogs/thoughts-do-you-know-your-net-worth and let’s start calibrating your path to clarity! JWM Wealth Management, LLC is a Registered Investment Advisor with the State of California and Joe Morgan is a fiduciary to his clients at all times. If you’d like to ensure your finances are on the right track, schedule a call with Joe at www.calendly.com/jwmwealth. You can also learn more at jwmwealth.com.
20
OCTOBER 2019
