Monthly Archives: October 2015

Learn the Language of Wealth Creation

Hello Friends,

If you want to create personal wealth, the first step you need to take is to learn the language of money.  Assets, liabilities and net worth are three words that make up an important formula to help you accumulate personal wealth.  The formula is:

ASSETS – LIABILITIES = NET WORTH

So what is an asset?  It is a possession that generally increases in value or provides a return, such as:

  • a savings account
  • a retirement plan
  • stock and bonds
  • a house

Some possessions (like your car, big-screen TV, boat and clothes) are assets, but they aren’t wealth-creating assets because they don’t earn money or rise in value.  A new car is a tool that takes you to work, but it’s not a wealth-creating asset.  Take note, I’m not talking about the likes of a celebrity’s antique car that can increase in value.

liability, also called debt, is money you owe, such as:

  • a home mortgage
  • credit card balances
  • a car loan
  • hospital and other medical bills
  • students loans

Net Worth is the difference between your assets (what you own) and your liabilities (what you owe).  Your net worth is your wealth.  Are you worth as much as you want to be?

Becoming financially stable takes discipline.  And it is a discipline only you can teach yourself.

If $ in < $ out, there’s a problem.

Invest in yourself.  Believe in yourself and be willing to improve yourself by mastering a new skill or increasing your knowledge base.

Download my free ebook, Money-O Management Kit for Beginners.  I have a section called Moneycabulary(tm) which will help you learn the language of money.  One Moneycabulary word to learn:  Money Values – a code of money ethics that adults and children may want to live by.  For Example, honesty, responsibility, family and health come before money.

 

 

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A.C.T.:Accept, Create, Take Action

Hello Friends,

Gary Emery, Ph.D., created the ACT formula for dealing with stress.  It is translated to mean:

  • Accept what is (which does not mean just passively accepting whatever life throws at us)
  • Create a vision
  • Take action to make it happen

I’m taking his formula and using it as a motivational tool.  If it is your goal to get your finances into better shape, start by:

  • Accepting and acknowledging your problem. This is the first step on the road to financial recovery
  • Creating a vision must be based on reality to result in practical action.  Envisioning practical opportunities such as paying bills on time to avoid interest and fees, avoiding cash advance loans or identifying “wants” versus “needs” to cut back or eliminate some expenses are examples of creating a practical vision.
  • Taking action to make it happen requires patience and envisioning success.

Be kind to yourself

So, don’t beat yourself up if you made some mistakes with money – forgive yourself.  Building wealth requires having the right information, planning and making good choices.  Educate yourself by taking small steps and using all the resources available.

Finally, when feeling blue, make a list of the things that you are grateful for.  Focusing on the positive can help reduce the stress of financial problems.  So can the color blue.  Blue is widely reported to have a soothing effect.  Try either visualizing this color or literally finding objects colored blue may help induce an experience of wholeness, peace or tranquility.

Thank you again for reading my blogs, playing the money-o games and downloading my ebook.  “Be not afraid of going slow; be only afraid of standing still.”  Chinese Wisdom

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