Key Takeaways
- Wealth begins in your mind and ends in your behavior
- When you're focused on growing your net worth, you are focused on productive assets not non-productive assets.
- Stop thinking about your debt. This may sound counterintuitive, but what we think about shows up in our behaviors. Instead, focus on your net worth. Most people who get out of debt, return to having debt because they didn't focus on the right target–net worth.
- Wealthy people are intentional with their money. "If you're not intentional with your money, you're likely giving it to someone who is" -Sean Allen, CEO.
Terms
Productive Assets: are assets that can provide you with a stable monthly income. A rental income property or dividend-paying stocks are common examples, but another example is a business you own, either as an owner/operator or as a silent partner. Those can all be examples of productive assets.
Non-Productive Debt: is debt that prevents you from growing your net worth. Credit card debt and auto loans are the most common types of non-productive debt. And contrary to opinion, student loan debt is also non-productive debt.
Instructions
Review your finances on the first of every month. Each month won't always go according to plan, so be prepared to have to adjust your CAFR. Go in to your WizeFi Plan and update your balances on the first of each month. Review your net worth and make sure you're on track with reaching sustainable wealth.