Understanding the Value of Your Net Worth and Not Flexing

Table of Contents

Ramping up on Flex Expenses

2019 ramped up the “Post to Flex” motif to 1000%. International travel has received a massive boom in interest (largely due to Instagram) and the dollars have increased to ridiculous numbers. According to the World Travel and Tourism Council, last year travel and tourism grew 3.9%, contributing to a growth of 319 million jobs and $8.8 trillion in hard smackers. The travel industry is becoming the second-fastest-growing sector in the world.

On the other hand, “Breakfast habits are shifting to fit consumers’ busy schedules and include more snacking, less traditional breakfast foods, and eating on-the-go during the morning hours,” per Hannah Spencer, Foodservice Analyst. All while Brunch is fast replacing the church as a must-do on Sunday and by extension Saturday. Articles such as “Why Sunday Brunch is the New Church”, “Brunch vs Church”, Brunch is Better than Church” are popping up.

While you might not agree, I’ll go out on a limb and say that in big cities like New York, Washington, DC, Atlanta, Dallas, and LA; Brunch is what most millennials and digitals are gravitating to.

Deep in Debt

Student loans are a problem and if that’s a cause for arguments; I’m not sure how you can argue facts. It’s like saying the sky is blue.

Student loans are now a staple for most millennials who rather simply ignore them due to stress and anxiety. I should know: it’s an automatic debit of $750 monthly for me. It is just a matter of time until all the puzzle pieces fall into place and we have a mental health epidemic on our hands.

Mood disorders, suicide rates, and an increase in isolation and depression; can be our new reality.

According to a new study, published by the American Psychological Association, rates of mood disorders and suicide-related outcomes have increased significantly over the last decade among 17-40 age groups, impacting females and those who are wealthier, in particular. Women often live with zero wealth for upwards to 20 years in retirement.

At the next brunch, ask about Net Worth and see how fast you catch the uninvited for the next one.

Allow me a few precious minutes of your attention span to help you with a lifetime of positive coping and unleash your Million Dollar potential. Grab the mimosa and jot down some notes.

Check out this free resource: Money Management Estimator

Let’s talk about your Net Worth.

If you don’t know what the term means, think of your Net worth analysis (fancy term) as an adult report card. It’s better than looking at your primary bank statement and cooler than talking about your credit score. It’s pretty easy. Knowing your personal net worth is one of the most important aspects of your personal finance and the type of life you want to live. Figuring out your net worth is easy.

The Formula: TOTAL ASSETS minus TOTAL LIABILITIES.

Simply put, all the good stuff and all the bad stuff you don’t like to talk about. Ok, I hear you. You aren’t a math nerd. That’s cool. Jump on Mint.com, a secure FREE website, and an app that allows you to view all your data in one location. I would also like to emphasize that Mint.com DOES NOT and CAN NOT do banking transactions for you. It is merely pulling data sets from your bank with no access to make any changes.

It’s a one-way street. No transfers. Your money is HIGHLY protected at your bank or other financial institutions. If someone hacks you, they will see how much money you owe and they might send you money out of pity or kindness. You are welcome.

I also have a shareable link for PersonalCapital.com in which you receive $20 worth of Amazon money when you completed the enrollment process. I receive an equal $20 worth of Amazon money as well.

What’s an Asset?

Current Checking and Savings accounts,
Market value investment accounts including individual stocks, bonds, mutual funds and etc,
Retirement savings such as 401ks and IRAs,
Home and/or rental property value,
The depreciated value of your vehicles, and
Items of significant value like artwork, antiques, or jewelry.

What’s a Liability?

The biggest is Mortgages on your primary residence and rental properties,
Student loans,
What you still owe on the Car loan(s),
Personal loans, (if any)
Credit card debt,
Medical debt (if any), and
Others like back taxes, judicial Liens, or judgments against you i.e. Child Support, debt repayment plans, and debt cancellation plans.

In the end, your money and worth are tied. The first steps to wealth are understanding your net worth and avoiding Flex culture.

Where are you?

“Cancel Every Relationship that Only Makes Withdrawals, not Deposits.” Wanda Tima-Gilles

Net Worth By 30

The average net worth for people living in the United States under age 35 is just $6,676. The goal is to have at least 1x your salary in savings by 30 or 1.5x your salary by 35. For most, minority millennials, it would likely be at least NEGATIVE $30k due to student loans. Most people, I know fall closer to negative $80k. Here are three simple solutions to improve immediately:

Prioritize your life. “You can afford anything, you just can’t afford everything” (Paula Pant) at once. You will have to start budgeting. It will make your life easier.
Pay off Credit Cards and keep them paid off. Establish control over yourself.
Start Investing. You are missing out on money. You don’t know how much because you aren’t invested.

Net Worth by 40

The average net worth for those aged 35-44 is $35,000. The goal is to have 2x your annual salary saved by age 40. Here are three tips:

Focus on your health since that can erode any savings.
Next, Focus on your wealth by planning and making S.M.A.R.T decisions.
Focus on your family and friends since your social circle has become crucial for your mental health and your spirit. Buy life insurance. Make a will. Don’t wait until it is too late.

Net Worth by 50

The average net worth for those aged 45-54 is $84,542. The goal is to have at least 4 times your annual salary saved by the age of 50.

This is where you can start leaving a legacy of helping others. It’s all about a purposeful life.
This is where you break the mold.
Or, this is the time you take inventory of the things you didn’t do and make great strides to change.

Net Worth by 60

The average net worth for those aged 55-64 is $143,964. The goal is to have six times your annual salary. The average net worth for those aged 65-69 is $194,226. You should have invested and saved up to ten times your annual salary and it’s time to retire.

The rest of the journey is something that belongs to you,
There is no perfect outcome nor a perfect way to live your life.

“The Rest of the Journey Belongs to You. You’d be better served by thinking about the end during the beginning… like point your destination in the GPS. LG”

Conclusion

If you are going to “Post to Flex” and live life on auto, this isn’t a “shade” piece. Just make sure you have your ducks in order.

This is the same as making sure your outfit is Fresh for the next big event. Enabling all the small pieces will ensure that you are living your best life.

Budgeting, Savings, and Investing is the adult version of “Post to Flex”. Simply, adopting a better lifestyle can lead to a better life.