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It’s been officially 3 months since I became debt free last December with a positive net worth. For those of you who are new I paid off $42,500 worth of debt which was a huge weight lifted off of my shoulders. It was important to me that while paying off my debt I was still putting aside money to save and invest. Debt is a huge part of your net worth so today I will be diving deeper into net worth’s explaining why it’s important and how to track your net worth no matter where you are in your journey.
[Me chilling in DC with my cute Love Shirt I love showing off my shoulders and this shirt was just $11.99 ] I went to DC this past weekend and had a blast the people were friendly, the food and drinks were amazing, but I also learned more about my ancestors my visiting the National Museum of African American History & Culture. I was blown away by the vivid details that I read about slavery. I recorded a full video on my thoughts below that you can check out.
Learning that the average net worth for a black person in Boston is just $8.00 is heart wrenching, but when you add slavery into the mix black people just haven’t had the privilege of being able to save and invest their money for years and pass on their wealth to the next generation. After slavery many black people were simply trying to survive, get a job, and live without getting killed so the thought of building wealth wasn’t really a goal for many.
I am the the first person in my family to graduate college, I am the descendants of slaves.
All of my grandparents have passed away without leaving any wealth to myself so it’s really up to me to start building wealth for the next generation.
I was attending a speed networking event last week with Financial advisors in Boston I was the only African American woman there. I over heard one man talk about how he just flew to Florida to meet with the grandparents of one of his clients who are leaving money behind for their grand children. He will then be managing the grandchildren’s wealth. Which is something that many African Americans simply just don’t have. If you’re like me then it is up to you to start building wealth for your family.
What is your net worth?
Your Net worth is what your worth financially. It is adding up all of your assets (savings, investments, ect) or everything you own and subtracting it by everything you owe (student loans, credit card debt, auto loans, mortgage ect)
It’s important to get into the habit of tracking your net worth each month. Below is a screen shot of what my net worth was when I first starting tracking my net work in May of 2015. As you can see although I had $30,425 in assets, since I owed $24, 984 in debt it brought my net worth down to $5,550.60. This was also the year that I held my first debt challenge and decided to get serious about achieving my goal of becoming debt free.
Download your free net worth tracker here to track your own net worth each month!
The difficulty of seeing where you currently stand
I admit it can be tough to face the truth of your numbers because you may be in the negatives. However the only way to make your way to having a positive net worth is by seeing exactly where you stand. I’ll be honest I have found it hard to track my net worth each month since becoming a full-time entrepreneur last year. When I had a 9-5 it was easy to throw extra money towards my savings and investments however now that I have my own business and am still in the growing stages the money that I make goes back into my business and just trying to survive.
I realized that no mater where I am it is important that I still track my net worth especially if I am telling you to do so. I checked my net worth this week and my net worth has gone up since eliminating my debt. When I left my job my 401k investments were worth $29,000 I rolled over the money into a roll over IRA and today it is worth $32,453.75. The other investments that I have are individual stocks, a Roth ira, and a solo 401k these are the assets that make up my net worth as well as my savings. If you haven’t already signed up for my free 5 day email course you can do so here each day I’m covering a different aspect of your finances.
How do you grow your net worth?
In order to grow your net worth you have to pay off debt, invest your money, save your money, own real estate and or start your own business. There are really the primary ways to grow your net worth. Kendra from The Key Resource has a ton of resources for you to get started in learning more about owning real estate. I did a live master class with her a few weeks ago on how to prepare for buying your first home you can purchase the replay here.
Kendra also has
The Real Estate Summit
The Real Estate Summit– a six part unlimited access pass to resources that teach you multiple ways to get started in real estate investing. This isn’t your run of the mill, pitchy marketing scheme to get you to purchase more product. The webinar offers a wealth of in- depth knowledge from six industry experts on subjects such as flipping real estate, wholesaling, tax deeds, rentals, house hacking, realty groups and so much more all in one comprehensive webinar style course.
If you’ve been wondering how to get started with Real Estate Investment and wealth building- start here!
Save your money automatically
If you’re not great with saving there are no excuses, you can use Rize which is an app that helps you automatically save money each month. You choose how much you want to put aside and Rize will pull this amount into a separate account for you. You can even give your savings goals different names. Rize isn’t free, but you can choose how much you want to pay each month whether it’s $1 or $5.00 if it helps you save more money than you originally would have it’s a great investment. Give Rize a try today.
Related post: Breaking up with Digit for Rize Review
If you haven’t sat down to figure out your net worth make sure you do so today. It is extremely important no matter where you currently are in your financial journey remember if you’re like me it’s up to you to be the one to start building wealth for your family. I’m here rooting for you! Also your net worth is not a reflection of your self worth this is important to keep in mind.
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