Creating Wealth - When Was Your Last Financial Checkup?
The importance of getting a regular financial checkup and how it relates to creating wealth Creating wealth, like any other important or critical part of life, requires check ups.
Just like you schedule regular maintenance for your vehicle to change the oil every 3,000 or so miles, just like you take your dog in to the vet once a year to get its shots, and just as you'd schedule visits to your doctor or dentist for a checkup on your health, it is just as important to schedule regular checkups for your financial health as well.
In comparison, thinking you can just look at yourself in the mirror each day to assess your level of health is like looking at how much stuff (aka doodads) you've accumulated to tell you how well you're doing financially - it doesn't tell you much.
Stepping on the scale or glancing at the dollar amount sitting in your bank account would be better, but still would only give you part of the story.
Regarding your health, you could be chronically ill but have jolted your body with so many stimulants and pills that you may actually think you are healthy enough.
Financially, this equates to someone enjoying the comforts of a lavish lifestyle, with the appearance of success on the outside, yet in reality they could be living paycheck to paycheck or worse subsidizing or financing their lavish lifestyle with credit cards and loans, maybe only days away from losing it all.
Again in both situations, the casual, surface glance can be deceiving.
Not until you take a closer, more thorough and accurate look can you know for sure.
You need actual measurements, real numbers; for health - weight, body fat percentage, BMI, pulse, good cholesterol count, bad cholesterol count, white blood cell count, etc; for finances - type of income (earned? portfolio? residual?) amount of income, expenses, assets, liabilities, DTI (debt to income ratio), DTE (debt to equity ratio), credit score, etc.
The numbers tell the story, the numbers don't lie.
This applies to both health as well as finances and is as critically important for maintaining good health as it is for creating wealth.
So if your goal is creating wealth, what should you do?
Just like you schedule regular maintenance for your vehicle to change the oil every 3,000 or so miles, just like you take your dog in to the vet once a year to get its shots, and just as you'd schedule visits to your doctor or dentist for a checkup on your health, it is just as important to schedule regular checkups for your financial health as well.
In comparison, thinking you can just look at yourself in the mirror each day to assess your level of health is like looking at how much stuff (aka doodads) you've accumulated to tell you how well you're doing financially - it doesn't tell you much.
Stepping on the scale or glancing at the dollar amount sitting in your bank account would be better, but still would only give you part of the story.
Regarding your health, you could be chronically ill but have jolted your body with so many stimulants and pills that you may actually think you are healthy enough.
Financially, this equates to someone enjoying the comforts of a lavish lifestyle, with the appearance of success on the outside, yet in reality they could be living paycheck to paycheck or worse subsidizing or financing their lavish lifestyle with credit cards and loans, maybe only days away from losing it all.
Again in both situations, the casual, surface glance can be deceiving.
Not until you take a closer, more thorough and accurate look can you know for sure.
You need actual measurements, real numbers; for health - weight, body fat percentage, BMI, pulse, good cholesterol count, bad cholesterol count, white blood cell count, etc; for finances - type of income (earned? portfolio? residual?) amount of income, expenses, assets, liabilities, DTI (debt to income ratio), DTE (debt to equity ratio), credit score, etc.
The numbers tell the story, the numbers don't lie.
This applies to both health as well as finances and is as critically important for maintaining good health as it is for creating wealth.
So if your goal is creating wealth, what should you do?
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