Know your starting point
Your net wealth is a financial measure of where you are right now. It is a snap-shot of your current financial position.
There is nothing right or wrong about the amount. But it does give you perspective.
This starting point can be a powerful force for you to start getting control over your money.
Start with where you are at.
We often hear the words ‘rising inflation’ and ‘rising interest rates’ but do we really understand these terms and the impacts they can have on us financially? What is inflation anyway and what does it have to do with the price of fish or the price of tomatoes which has received a lot of media attention lately?
Are you using tomorrow’s money today? What happens when tomorrow comes along? Are you spending more than you earn? What if your income stops? If you are spending money today that was meant for tomorrow, then you have a problem. You will at some stage need to catch up. Are you getting the right information?