Discover The Truth About Your Net Worth

In the last email we looked at the reality that far too many people march down the wrong road in life. Sadly, when we continue to do the same things that those before us have always done, we will get the exact same results. Today, let's take a closer look at some interesting facts about your finances.

Get your calculator, or a scratch pad and pencil, and try to figure out how long it would take for you to save $100,000? Or better yet, how long would it take for you to develop a total net worth of $100,000? Did you know that for the average person, at least in America, the answer is 22 whole years after they enter the work force? Think about that. In numbers, that works out to approximately $5000/year, or only $400/month. For most Americans they may be able to achieve that net worth number, but accumulating actual savings is a totally different story.

What is net worth anyway? Simply defined, net worth is the total value of what you own (assets) minus the amount of your total debt (liabilities). For example, if you bought a house for $100,000 with a $20,000 down payment, and still owed $67,000, the net worth of your house alone would be $33,000. Unfortunately, net worth is not real money you can spend any time you want to. Why? Because it's 'non-liquid', which means it's tied up somewhere and you can't just go out and spend it. You would have to sell an asset of some kind to turn it into cash.

Now let's look at the value of your net worth from a different perspective. If you were to start a business of your own and it generated just $500/month in profit by the end of one year, would that be very much money? Don't jump to conclusions too fast. Instead, think about it before you answer. Better yet, we'll ask the question in a different way. How much money must you have in an interest bearing bank account in order to receive $500 a month in actual interest, assuming a rate of 6%? The answer: $100,000.

What does this mean? Well, if you were to start a business and it were to generate $500 a month by the end of the first year that would be the exact same result as having a whopping $100,000 in the bank. Translated, this would be the equivalent of having virtually created a net asset value of $100,000 in 12 months, which normally takes the average American 22 years on the job to accomplish!

Which sounds better to you, one year of work in your own business, or 22 years on the job to essentially accomplish the same thing? And, which result can a person actually spend on a regular basis, the $500 a month cash flow, or the 22 years of accumulated net worth? Sadly, far too many people don't know this reality and how they can create their own net asset value of $100,000 in 12 months. What about you?

Here's the good news. We specialize in showing people how to change their lives to create new net asset value every month. If you would like to learn more, email your name, phone number, and the best time to call and we will show you how. And, don't worry, we'll keep your information private. CLICK HERE to send the email.

To Your Success,

Stephan Bourget

PS: Here's a program that will help you in managing YOUR Finances.

Financial Power Tools - The Power To Manage Your Money