BUILDING WEALTH FROM NOTHING IS NOT IMPOSSIBLE AND WORTH THE CHALLENGE
You can’t be financially successful unless you’ve created a personal manual and mastered it which is why it’s very important to build wealth from the inside out.
What does all this mean?
It means you need to have a purpose before you can fulfill your financial dreams and the only way to achieve this starts with-in by writing a story.
To build wealth you must do 3 things;
Plan it, Master it, Live it.
Build wealth without fear of failure
1. Investigate step by step the reasons why you want to be financially free.
Once you have a clear view of your path or even an inkling of where you want to be it will help you take the first step. For example when Mrs. CBB and I decided to use a budget we talked about why we wanted to use one and wrote down some key points to make sure we were on the same page in the manual we were creating to build wealth.
2. Create a strategy and a sketch
It’s great that you have ideas but you need action steps to guide you on your way. This is all about the big picture but even directors of a major motion films have to make cuts. You can’t just jump into the financial world believing you will become rich, you have to make it happen with a bit of elbow grease. Along the way if you don’t have a blueprint to fall back on you may sink your ship fast so don’t jump in without a bucket of cash on the side and a back-up plan.
3. Build a Network
Connect with people who are good for you. Don’t just settle for the same 9-5 job, pay cheque and then call it a night. If you want to build wealth you need to focus on your mindset. Once you’ve mastered where you want to go financially start talking to people who are on their way, already there or can help you get over a hump if you fall.
When I moved to Canada I didn’t have a fleet of friends to guide me so I had to engineer a plan so I met people with a similar mindset, compile contact strategy and engage in conversation that revolved around constructing my master plan- to build wealth.
4. Be a Boss
I’ve coached a few people in my time about how to build wealth, get out of debt and to start using a budget. We call this wealth management something that many people are afraid of because they think it’s too complicated. What’s difficult is living through a financial drought without purpose.
The excitement or the dream of financial freedom is so prominent when the plan gets off the ground but one hiccup and some people throw in the towel. You don’t fail when your aim is to build wealth-you fail because you gave up trying to master it by finding what works for you. Your money is your business, own it.
5. Stay Positive
If you believe you will always be financially strapped, you will be.
Repeat after me…
I deserve to be financially free therefore I will become free from all debts.
Keep telling yourself this and turn your words into actions that produce results. They may not be the results you want right away but as long as you are seeing improvements that means you’re manual is working.
I Am Financially Free
Thankfully over the last 9 years I’ve met many people who all offer me something important in my manual to build wealth and that’s friendship. Don’t compose each chapter on your journey to build wealth just about you. You have to give to get in return and even then you should never expect anything more than a thank-you.
I’m thankful that my wife and I established early on in our relationship that we both wanted to build wealth by becoming debt free and investing in our financial future together. What is more important to take from all the above is that if YOU don’t start your journey to build wealth from the inside out and believe in yourself first then no one else will believe in you.
You can only fool the piper once and after that word of mouth follows you as does debt, bad credit score and financial stress until you clean up your mess. There’s always a way out so start creating your manual today and build wealth without worrying about what everyone else is doing.
What would you do first to build wealth now so you can enjoy financial freedom in the future?
Our Net Worth 2016
RESP Contribution 2016: $208.33 a month.
Changes to our Net Worth in August
Not a particularly amazing month by any stretch of the imagination, but things are still growing slowly. We’re not expecting huge gains every month in our investments, just gains. We know it’s always going to be up and down so making modest gains is always better than no gain at all.
Our income was not high this month either because I have been on a much smaller part-time contract which dictates a much smaller part-time income. Don’t get me wrong, the money is nice but sometimes you need a break.
Understanding Net Worth
What Does Individual Net Worth Mean?
Net Worth is a snap shot of your financial health sort of like a picture or debt to net assets. In simple terms it’s a total of the value of your assets minus your liabilities.
We credit the growth of our net worth due to patience, perseverance, using a monthly budget and not giving up. Your numbers may go up and down but don’t let the numbers scare you rather understand why and move on.
If you would like to use our budget I offer a FREE downloadable budget which I created and that you can use at home just like we do. I don’t charge for it because I want you to save money not spend more!
There are tonnes of other free printable lists offered at Canadian Budget Binder to help you achieve some of those financial goals and build your net worth. Now determine just how much net worth you actually have and go from there.
Enjoy and let me know what you think.
Determining Net Worth
Figuring out net worth is fairly easy as long as you know your personal numbers or monthly finances which means you need to do your homework. Net Worth is simply adding up all your assets (what you own) then taking away your liabilities (what you owe) which will give you a net worth number.
Understanding your net worth will help you determine if you are on track to meeting or beating your personal financial goals. It doesn’t get any easier than that.
Net Worth = Assets – Liabilities
Calculate net worth
Do you know how to calculate your own Net Worth?
Now you can stop asking yourself the question, how do you find out your net worth? Why? It’s easy to determine. We like to calculate our net worth every month so we know if we are still on track. Some people calculate it yearly or quarterly. It’s really up to you and how informed you want to stay when it comes to your financial health.
Net Worth is essentially an estimate and not everyone uses the same type of figures. Some people don’t include vehicles like we do or they may leave out the assets inside the home like we have. It depends on what you want to calculate or what you can sell today and make money on.
Why not go ahead and calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder 2012)
Why you should set goals
Setting goals are the only way we work towards achieving what we want to get done as a couple around the house and in our financial life. I know that without them we would be flying by the seat of our pants which wouldn’t work for us.
I find it’s much easier to be held accountable when I share what we need to do with all of you. Yes, my wife refers to the list when she asks what I plan to do next. I’m not sure if that’s a good thing for me or not.
In the graphical representation above, I have used excel to provide a trend line prediction based on the past years monthly net worth figures.
Using figures from our actual net worth gains over the past 12 months (the solid blue line) it has suggested that by the end of this year (2016) we should be around $900,000.00. This can change over the course of the year and is only a prediction based on known historical figures from our finances.
According to the chart, we should hit the million mark in August 2017.
This is nice to know but anything can happen over the next year. Hopefully with some careful planning we can achieve this goal and go beyond it.
Do you set goals for the year?
Our financial numbers
When budgeting anything is possible, we are proof of that although we still have a long way to go in our journey. These are our numbers and our goals, not a means of comparison towards your own goals to others target goals.
We don’t care how much money others make or if they have a high net worth or if it is lower than ours as it’s not a competition. I hope our experiences perhaps will help guide you along your financial path working towards debt freedom.
Different financial paths
Not everyone has the same path in life. Some of you may have had to start over like I did or go to school a second time and now have OSAP loans to pay back.
Others may have divorced, lost money in the stock market or other investments, suffered job loss, fell ill or was injured on the job etc. but you can’t let that stop you from achieving your financial goals.
Some of you may have been given trust funds, paid-for homes, paid educations or perks in life that give you a financial kick-start and that’s OK too. Remember what I said, “It’s not about how much money you make, it’s how you save it”.
Focus on you and don’t let the evil eye of money jealousy or keeping up with the Kardashians cloud your vision. No one cares about your money as much as you do so don’t waste your energy trying.
The only reason people accumulate wealth is because they know how to save or invest it wisely even if they did inherit money or win the lottery. The smallest improvements should mean big strides in working towards reaching your goals.
Sometimes we have to fail in order to learn and we’ve all been there. Money can be an evil force for some people especially those who have a negative attitude towards their own financial situation.
I urge you to be optimistic and little by little with determination you too should see improvements, if you want that to happen.
Net worth updates 2016
Below you can click the links to read past 2016 net worth updates to see if we were on target or if we struggled with some of our numbers.
In the last year since August 2015 our net worth according to our figures has grown $131,825.98
August 2016 $853,748.24 – August 2015 $721,922.26 = +$131,825.98
- November/December 2015
- January 2016
- February 2016
- March 2016
- April 2016
- May 2016
- June 2016
- July 2016- Oops looks as if I missed this month.
That’s all for this months net worth update but please check in at the beginning of October 2016 to see how we made out in September 2016 and what has happened to our finances since.
Remember: “It’s Not About How Much Money You Make It’s How You Save It“
Check out our past actual Monthly Budget Updates to see how much money we earned and where the money went for the month.