Reading: Your Net Worth and Your Personal Balance Sheet Slides
LESSON 7: YOUR PERSONAL BALANCE SHEET & NET WORTH
Read: Why Teach Financial Literacy
“Money without financial intelligence is money soon gone.”
“It’s now how much money you make, it’s how much money you keep.”
Review of Key Concept: Net Income
Earnings
- Expenses
==============
= Net Income
Net Income is the difference between what you Earn and what you Spend.
What Makes the Difference Between
The Rich vs. Middle Class vs. Poor
Poor = Net Income of (-).
They spend more than they earn.
They borrow to buy the things they want.
Middle Class = Net Income of (0).
They live paycheck to paycheck.
They do not borrow, but do not save.
They spend every dollar they earn.
Rich = Net Income of (+).
They save a part of all they earn.
They live under their means.
They are smart and patient and know the key to wealth is savings and investment.
Rich vs. Middle Class vs. Poor
Poor
Earn $100
- Spend $101
======================
= Borrow ($1)
Money is Like a Seed
Where Will You Be When You Turn 80?
Poor
Earn $100
- Spend $101
======================
= In Debt ($100k’s)
Breakthrough Thought:
Do Not Confuse Assets & Liabilities!
Assets: An asset puts money in your pocket
Liabilities: A liability takes money out of your pocket
Net Worth: The difference between Assets and Liabilities
“If you want to be rich, accounting could be the most important subject you should learn.”
– Robert Kiyosaki
What is a Balance Sheet?
“If you want to be rich, simply spend your life buying assets. If you want to be poor or middle class, spend your life buying liabilities. Its not knowing the difference that causes most of the financial struggle.”
– Robert Kiyosaki
Money Makes the World Go Around
“To get the maximum benefit out of money, what we need to do is to create mental cash flow patterns that will guide your thoughts so that your money will flow in the direction that you want it to go.”
– Alex Barron
Cash Flow Pattern of an Asset
Why the rich get richer
Cash Flow Pattern of a Liability
Why the poor get poorer
Cash Flow Pattern of the Poor
Money burns in their pocket. Money is spent to survive.
Cash Flow Pattern of Middle Class
Living Paycheck to Paycheck – Caught in the Rat Race. Money is spent to pay off liabilities.
Cash Flow Pattern of the Rich
The rich buy assets. Money works for them.
The Cash Flow Tells the Story!
The cash flow is the story of how a person handles their money, what they do after they get the money in their hand.
More money will not solve your problems. Money only accentuates the cash flow pattern running in your head.
What is missing from education is not how to make money, but how to spend money. – what to do after you make it.
Financial aptitude is what you do with the money once you make it, how to keep people from taking it from you, how long you keep it, and how hard that money works for you.
Most people do not understand cash flow. A person can be highly educated, professionally successful, and financially illiterate!
– Robert Kiyosaki
Don’t Let the Power of Money Work Against You!
The poor and middle class all too often allow the power of money to control them. By simply getting up and working harder, failing to ask themselves if what they do makes sense, they shoot themselves in the foot as they leave to work every morning. By not fully understanding money, the vast majority of people allow the awesome power of money to control them. The power of money is used against them.
– Robert Kiyosaki
TRANSFORMATIONAL THOUGHT:
What is the Goal of Financial Freedom?
The goal of financial freedom is to reach the point at which the income you make from your assets is greater than the expenses you require to maintain your lifestyle. So the goal of a financial freedom program is to acquire assets and build a portfolio of assets that will eventually enable you to earn enough to do what you want to do without having to work or worry about how you will make a living.
– Alex Barron
What’s in a Balance Sheet?
ASSETS
Cash, Gold
Stocks, Bonds
Real Estate
PURCHASES
House
Cars
Furniture
How to Determine Net Worth?
EQUITY = ASSETS + PURCHASES - LIABILITIES
NET WORTH = OWN - OWE
Balance Sheet for Most People
ASSETS
FINANCIAL ASSETS
Job
Checking Account $1,000
PURCHASES
Car $30,000
Home $160,000
============+=============
TOTAL ASSETS $191,000
LIABILITIES
“GOOD” LIABILITIES
Student Loan $50,000
“BAD” LIABILITIES
Credit Cards $20,000
Car Loan $40,000
Home Mortgage $155,000
===========================
TOTAL LIABILITIES $265,000
NET WORTH = ($74,000)
What’s in Your Intangible Balance Sheet?
Intangible Assets
Education
Work Ethic
Job
Business
Decisions
Opportunities
Reputation
Experience
Your Intangible Balance Sheet
“BE” ASSETS
Reliability
Honesty
Faithfulness
Punctuality
Persistence
Commitment
Your Intangible Balance Sheet
“BELIEVE” ASSETS
Money is a Tool
Stewardship Mentality
God’s Will is Prosperity
God Has a Purpose for My Life
Your Intangible Balance Sheet
“THINK” ASSETS
Positive Mental Attitude (PMA)
Abundance Mentality
Positive Perspective = How You “See” the World
Recognize Opportunities
Your Intangible Balance Sheet
“KNOW” ASSETS
Education
Knowledge
Information
Skills
Experience
Your Intangible Balance Sheet
“DO” ASSETS
Opportunity
Decision Making
Action!
Your Intangible Balance Sheet
“PEOPLE” ASSETS
Family
Mentors
Clients
Co-Workers
Employees
Suppliers
Your Intangible Balance Sheet
“HAVE” ASSETS
Job or Work
Business
Real Estate
Home
Cars
Insurance
Your Intangible Net Worth
“EARN” ASSETS
Name
Reputation
Track Record
Experience
Credit History
“Real” Balance Sheet - Bad
ASSETS
“INTANGIBLE” ASSETS
Hard Work Ethic
Honesty
Family
Health
Traditional Education
FINANCIAL ASSETS
Job
Checking Account $1,000
PURCHASES
Car $30,000
Home $200,000
===================================
TOTAL ASSETS $231,000
LIABILITIES
“INTANGIBLE” LIABILITIES
Victim Mentality, Comfort Zone
Bad Habits, Addictions, Wrong Friends
Fears, Doubts, Insecurity
Bad Attitudes, Character Flaws
“GOOD” LIABILITIES
Student Loans $80,000
“BAD” LIABILITIES
Credit Cards $20,000
Car Loan $40,000
Home Mortgage $195,000
====================================
TOTAL LIABILITIES $335,000
NET WORTH = ($104,000)
“Ideal” Balance Sheet - Good
ASSETS
“INTANGIBLE” ASSETS
YOU ARE YOUR BEST INVESTMENT!
Prosperity and Abundance Mindset
Positive Mental Attitude
Dreams, Vision, Purpose, Goals, Destiny, Direction in Life, Sense of Destiny
Work on Your Business
FINANCIAL ASSETS
Checking Account $100,000
Savings Account $100,000
“Your Own Bank” Policy $1,000,000
Your Own Business $1,000,000
Investments $1,000,000
Real Estate Investments $700,000
PURCHASES
Car $100,000
Home $1,000,000
=======================================
TOTAL ASSETS $5,000,000
LIABILITIES
“INTANGIBLE” LIABILITIES
“GOOD” LIABILITIES
Student Loans $0
Investment Loans $0
“BAD” LIABILITIES
Credit Cards $0
Car Loans $0
Home Mortgage $0
=========================================
TOTAL LIABILITIES $0
NET WORTH = $5,000,000
CONCLUSION: How Is Your Balance Sheet?
What is Your Net Worth?
Questions? Thoughts?
Última modificación: martes, 28 de mayo de 2019, 11:16