Every businessman or women needs to know how much they are worth. Now for a lot of people it isn’t always easy calculating their net worth, but in today’s episode I’ll help you understand how exactly to go about doing it yourself.
Your Cloud and Rain represent your Income and Expenses. We will discuss this in future podcast.
In this episode we look at the top Three Elements of your Map:
- Your Sun
- Your Moon, and
- Your Stars.
- If you own a Business, it forms part of Your Sun. The way to value your Business is to determine how much you can get if you have to sell your Business today. If you owe money on your Business, then deduct that to get to the Net Worth of your Business.
Always remember: The Return that you require from Your Sun is at least 30 to 50 percent.
- Any other ‘passive’ Investments that you own, forms part of Your Moon. Include here any private or listed stocks/shares, bonds, savings, Mutual funds/Unit trusts, Retirement Annuities, Pension Funds, etc. Again, include the values as they are today.
The return that you want from Your Moon is at least the Inflation Rate, plus 3 to 4 percent.
- Lastly, Your Stars. Include here Rental Properties, Royalties, Books, or any other Item where you receive some Recurring Income from.
The return that you want from Your Stars is at least 50 percent up to infinity. And believe me: infinite returns are possible. We’ll talk about this later.
I am not a Financial Advisor, Attorney, Accountant or any other Professional, and never WANT to be. I’d rather be FREE. I share MY experience and knowledge. I don’t give advice.
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