Negative Net Worth – No Problem

The truth is as we calculate our net worth, it might even result in a negative number. This is not a cause for alarm. It is reality.  It doesn’t matter as long as we see this as a starting point and believe to increase this number. The issue is not how much you own, it is how you think about what you own. You are a manager of what God has given you. Determine your net worth and make a plan to increase it. In discussing net worth, I want to be clear that financial net worth in no way minimizes the fact that we are all of great worth to the Lord Jesus. We are of worth to him because we are created in his image and he loves us. Understanding our financial net worth will help us fulfill our destiny.

This is a simple matter of listing all of your assets and how much they are currently worth after subtracting what you owe on them. Part of the process is to determine how much equity you have in your house if you own one. To do this you determine the fair market value of your house and subtract the amount you owe on it in a mortgage. You do the same for your furniture, your cars, everything you own. You might have some retirement funds. These are added to the asset side of your net worth. If you have debt, like credit cards, this is subtracted on the liability side. When you add all the assets together and subtract all the liabilities this gives you your net worth. It will take time and some research to complete this calculation. It will be worth it.

Remember, if the net worth you determine is small or even negative this is not a problem because you are changing your thinking. When I first started to calculate my net worth I did it every six months. It was amazing to watch it grow little by little. This was really encouraging because in the midst of a busy life of paying bills, kids in sports, birthdays, buying food and clothes, etc., it really didn’t “feel” like we were getting ahead. But then I would calculate my net worth halfway through the year, and sure enough, it was increasing because of some decisions we made at the beginning of the year.

If you don’t know your net worth be brave and calculate it now. There will be more tips in upcoming posts.

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