Today we continue with Personal Finance A-Z by discussing marriage, net worth, and opportunity cost. If you enjoyed this episode please leave a review in iTunes.
One of the leading causes of divorce in our country today is money. What would happen to your marriage if instead of fighting over money you could talk about money? To win with money you have to have unity in your finances. You can not do the money thing by yourself; it takes two people who are on the same page and have the same goal.
We talked about assets when we covered the letter “A” and liabilities when we covered letter “L” but what do you get when you subtract your liabilities from your assets? You get what we call your net worth. Knowing your net worth is important because it is really a scorecard of how well you are doing financially. If you do not know where you stand, feel free to use the net worth spreadsheet to help you out. But beware: never confuse your net worth with your self-worth.
Opportunity Cost is what you have to give up to do a certain task. It can be measured in time, energy, and most importantly money. Remember your money is finite so when you say “Yes” to something financially, you are saying “No” to something else as well. The problem with credit is that the banks are the ones who win and your bank account suffers so when you use credit, opportunity truly does COST you.
In addition, for those of you in the Central Ohio area, on Tuesday November 8th at 7pm at the Columbus Library-Hilliard branch, we will be having the third course of the Great Recovery on I-70 series. November’s class is all about finding a career that you have a passion for. The class will last approximately 90 minutes and is open to the public. Feel to free to invite your friends, co-workers, or anybody else who would want to come.
If you have any comments, questions, or ideas for future shows you can send them to me and I will integrate them into a future show. Please Email me them at JWFinancialcoaching@gmail.com -You may subscribe to the Podcast either through Feedburner or iTunes.