Ah, net worth. We talk about it from time to time here at Hipster – after all, we are an investment firm focused on strong cash flow from smart investments. There’s more, however, to net worth than just dollars and cents. Your bank account isn’t the only thing that holds value; in fact, your life could be said to have much more value than the money in your wallet. After all, we only get one life to live.
Net worth is the total of your assets minus any debts you have. What’s the net worth of your life? What’s the quality of each year, month, week, day and minute? What are your daily obligations like? How much do your daily obligations and must-do tasks take away from your freedom to live the life you really want? Are you investing in your life: are you planting seeds that will grow into crops that continue to sustain you for years and years to come? Are you finding ways to reduce the load of your daily obligations so you have more free time (aka quality time)?
What’s your life’s net worth? Are you happy with it?
If you’re like most of us on Planet Earth, you probably think your net worth could go up a bit. It’s a human instinct to want to better the conditions of our lives. How can you up your life’s net worth? Here are three action steps you can put into play ASAP:
1. Form a Clear Vision of Your Ideal Life’s Net Worth
When we think about money and how much of it we’d like to have, we think in terms of firm numbers. We don’t just think we’d like a bunch of money – we think, “I need X amount of money.” When you think about your life and how you want it to be, remain clear. Don’t just think “I want more freedom”: think, instead, about what more freedom looks like for you. Be as clear as possible about what you want your life to be.
2. Start Saving (Time)
To up your net worth financially, it’s a wise idea to stop any unnecessary losses. Same principle applies when it comes to upping the quality of your life. Are you wasting time doing things that don’t ultimately benefit you that much? Find a way to stop wasting your time so you can focus in on what really matters.
3. Invest in Yourself
What makes your heart sing? What do you want to be doing next year, in five years, in ten? Invest in yourself – give yourself quality life experiences and find ways to create more. Whether it’s going back to school or finding a new career, smart investments – whether personal or financial – are almost always a smart way to up net worth.
Key Takeaway for Everyone:
Take the quality of your life as seriously as you take the amounts in your bank accounts. Treat your life like the valuable asset it is: enrich it, save it and grow it.
Key Takeaway for Real Estate Investors:
When you invest, figure out how your investments will add or take away from the quality of your life. If an investment looks like it will pay well but it will also add a whole lot of stress and require a bunch of time from you, think twice. The net worth of your life matters, too.