Your Report Card!
Think back to when you were in school, what was that one thing you would have to bring home quarterly that maybe, or maybe not, you would share with your parents? Yes, that was your report card. If you had A’s and B’s, you were running home to show your parents, if you had C’s and D’s, somewhere along the line between school and getting home, most likely you lost it.
However, we’re all grown adults now. We’re all running organizations, families, businesses, and teams, acquiring wealth, and looking to retire so we can enjoy the fruits and benefits of all that hard work. So, what is your report card now? Your report card is your personal balance statement. That’s it. Understand, that your business is just a vehicle to create wealth to give us the opportunity to do what we want, when we want, with who we want, whenever we want. That’s it. The ultimate goal of delivering abundance, just going wherever traveling the world, it’s your personal balance statement, that is what gets you there. And if you don’t know your adult report card or your personal balance statement, why are you doing what you’re doing, and do you know if you are on track?
A personal balance statement is very simply a report that lists your assets on one side and your liabilities on the other. You have a list of all your assets, bank accounts, cars, home, business, stocks, bonds, annuities, and anything that is an asset financially that you document on one side. On the other side you list all your liabilities, your mortgage, credit card debt, short-term loans, long-term loans, business loans, car loans, and whatever debt or liabilities you may have that are now documented on the other side. In final, that will show you exactly what your liabilities are, exactly what your assets are, and it will subtract the liabilities from your assets and give you your current day net worth
You’ll have your liquid net worth of what’s liquid being stocks, cash, and such like that. And there’ll be your illiquid, which is your home as an example. It’s equity, yes, but it’s illiquid as it first needs to be sold into a liquid asset. Now there’s a certain way of looking at this, and that is the bottom line when you do your personal balance sheet, you’ll know your net worth to the penny and the day. If there’s a certain monetary number you want one day to retire, then you can start with a game plan of how to add assets, while cleaning up the balance sheet to hit that number.
However, if you don’t know the number because you don’t know your balance sheet, what are you doing? It’s your report card. This is your life; your report card is the most important thing you have. If anybody does not have this, you just may be unaware or it might be because you’re intimidated, maybe you don’t want to see what it looks like, however, the truth will set you free.
My wife and I sat down over six years ago and reviewed our balance statement together, as she pays all the bills. After reviewing and having Susan understand the value of this statement, within two years we were debt free and our net worth has since increased dramatically. I don’t share this to impress you, I share this to impress upon you as once my wife understood how it worked, boom, we made it happen. We accumulated wealth and abundance. And this, I wish the same for you.
If you don’t have your adult report card, I have attached a link below with both a sample tab as well as the blank tab for you. Remember, everyone’s starting line is in a different place. Get over your intimidation of filling this out and just start creating clarity while building your personal wealth.
COACH MICHAEL DILL is an Award-Winning Certified Business Coach, global speaker, and published author. He is a proud Action Coach Franchise partner as well as the President of Power & Ice Wealth Creation a strategic leadership company that works with business owners, leaders, teams, and entrepreneurs to both develop a systematized and structured organization while accelerating their mindset, efficiencies, and effectiveness to grow both personally and professionally to achieve extraordinary results. He brings more than 40 years of business and entrepreneurial experience in his leadership, team training, and mentoring practice. Businesscoachmichaeldill.com