assets

Taking the Long View

Some things just take time. Put aside $1000 in an interest-earning account and leave it alone for twenty years and you’ll have a ton of money. Plant a shade tree now, and ten years from now you’ll have shade. Have a baby now and eighteen to twenty-two years from now they’ll be pretty much grown up. Live long enough, and you’ll be eighty. Some things just can’t be rushed.

Unfortunately, the prime years for starting things like shade trees and decades-long savings plans are our twenties and thirties. I for one was not thinking long term during that phase of my life. When those years are gone, they’re gone.

On the other hand, you haven’t lost until you give up. Start those retirement savings in your forties, fifties, even sixties, and you’ll have a great deal more than you would have if you’d never started.

The hybrid poplar tree can grow eight feet a year. Plant it where it will shade your air conditioner compressor the first year and your windows in later years.

Adopt an older child and they’ll be in college before you know it.

Eat your vegetables now, and maybe you will get to eighty.

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Easy Net Worth Calculation

The idea of computing your net worth can seem intimidating. It sounds awfully accounting-ish and formal. When it’s just for your own information, it’s easy.

Take a piece of paper or a spreadsheet. Write down the value of your big stuff:

Home if you own it (https://www.zillow.com/how-much-is-my-home-worth/),

Other real estate,

Bank account balances,

Brokerage account, IRA, 401k, (just use the most recent statement. Doesn’t need to be exact to the penny.)

The amount you could get for your car, jewelry, and collectibles if you sold them, (If you guess, guess low.)

Anything else I haven’t thought of.

Add it up.

Write down everything you owe:

Mortgage,

Credit cards, personal loans, car loans, medical and dental bills, (this does not include current utility bills, only debts)

Anything else I haven’t thought of.

Add it up.

Subtract the amount owed from the total of assets.

If the amount is negative, it’s probably a good idea to work on reducing the amount of debt you have.

If it’s positive, you’re way ahead of many people, so keep on!

 

 

http://www.amazon.com/author/mariebrack