Do you feel “stuck” financially? If so, this one trick can change your financial status.
Think in terms of NET WORTH instead of INCOME.
It can become easy to focus only on current circumstances. If asked, “How are you doing financially?” by a close friend or family member, an “income” thinker might respond with these type of answers:
- Raises “I got a raise!” or “I haven’t gotten a raise in three years.”
- Income “I’m making more money than I ever have.” or “I’m making half of what I used to make.”
- Outgo “Costs keep going up up up!” or “My kids are eating me out of house and home.”
BUT if you move to another level of financial awareness, your answers would be much more focused on building net worth instead of income. Responses of a “net worth” focused individual would be similar to:
- Assets “I purchased another rental home. It was cash flow positive from day one, will be paid off within five years, and will then provide free cash flow, after expenses, of around $600/month for the rest of my life.”
- Liabilities “I paid off my home mortgage. This has freed up substantial income I am going to use to purchase more assets.”
The INCOME approach can take a negative “victim” turn where financial challenges are the result of something or someone else. The NET WORTH approach allows you to take control of your financial future.