True Riches

It may be worth mentioning - repeatedly - that just because you have stuff – cars, home(s), and stuff to put in your stuff – doesn’t mean that you are wealthy.

Riches are going to look different for everyone; what you hold dear and what makes your heart skip a beat when you look at it.  For you it may be your fast vehicle, house or a business you’ve built, but tread cautiously.  Mike from Clever Dude recaps his mistakes online so others can learn from them.

Mike mentioned in a blog post that although he owned a $400,000 home and had 3 cars, all but one car belonged to the bank.  Keeping in perspective what your incoming and outgoing expenses are, how much debt you have and what the value of what you have is can help you determine your true net worth.

Your true value is not based on what you owe and what you own - it's just a way to keep score.  There will be times when you are a bit unbalanced because you’re investing more heavily in another opportunity, but the goal should almost always be to stay balanced, working toward eliminating debt and building wealth.

If you’re looking for some specific tools and tips, Smart Money Tips offers a Budget Calculator and George S. May International Company provides a Financial Fitness Calculator to give you a general idea of how healthy your business is.