The Personal Finance Podcast The 6 Numbers You Must Know to Build Wealth (The Financial Scorecard)
Oct 10, 2024
Discover the six essential numbers crucial for building wealth. Learn the importance of tracking your income and net worth for effective financial planning. Understand how to differentiate between necessary expenses and lifestyle choices. Get strategies for managing debt and determining your savings rate. This valuable insight can guide you toward financial independence and help you plan for a secure retirement.
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Track Net Worth
- Track your net worth to understand your financial health.
- Knowing your net worth is more important than budgeting daily.
Understanding Net Worth
- Net worth is the difference between assets (what you own) and liabilities (what you owe).
- Assets can include equity in cars, homes, investments, and even personal property.
Net Worth Goals
- Don't compare your net worth to the median; aim higher.
- Andrew will discuss ideal net worth by age in a future episode.