Thursday, July 05, 2007

Net Worth Update for End of June

Net Worth

June has marked a serious improvement for net worth. Largely due to some unexpected income, It was possible to make a serious dent in a student loan. The remainder of this loan is sitting on a zero percent credit card for a few more months and large payments are now going to be directed at it in an attempt to pay it off before the end of the year. That may or may not be a reasonable goal, but I expect that it is.

http://www.networthiq.com/people/easychange

Business investments continue to do well. I'm satisfied with my paypal interest rate as well as the amount of savings that is now accumulated. I'm also happy with Prosper, of late. The total savings means that given a job loss that there is easily 6 months of expenses saved. This is a huge milestone in terms of emergency fund planning. Of course this will continue to go up and down, but knowing that there is a real cash cushion is something that everyone should be striving for in my opinion.

New Thinking

I'm rereading Rich Dad for the third time this year and I am struck by the simple notion that fear and greed are the emotions that trap us when it comes to our money. I find that this is absolutely true for me. Last year I felt afraid and had no control over my financial situation. Now, I feel empowered. I have educated myself and continue to do so. I am continuously working to realize my dreams -- and accumulating the wealth necessary for them.

This has resulted in watching the following Finance Metrics like a hawk:

1. Total Net Worth
2. Total Free Cash Flow (monthly - budgetting)
3. Savings Rate (savings to income ratio)
4. Retirement Projections (contributions and how much you plan to have when you retire - monthly income)
5. Goal Progress (debt reduction)

As a result of tracking all of these metrics, it becomes much easier to find holes in the financial situation. If you are not sure where your holes are in your budget, I'd ask if you are tracking these figures. I feel that tracking these over time gives me real data that tells me if I am moving down the correct path with personal finances AND if I am making enough progress.

The real issue for many is that they aren't moving fast enough and are doing nothing to pick up the pace. Time is a huge factor when you consider compound interest. Once I really understood that, it has made me ravenous in terms of finding additional income and other ways to accelerate my progress.

Net Worth News

In major news, Bill Gates is no longer the richest man in the world. He has been ousted by Carlos Slim. If you're curious who the richest people in tech are, check out the link:

http://mashable.com/2007/07/04/10-richest-people-in-tech/

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