Chicago, July 26, 2010 — In an effort to control their personal finances, many people have focused on two things: reducing spending and reducing outstanding debt. Both of these are essential goals for those who found themselves deep in debt when the economy changed. Their excessive spending (spending more than they earned) caused them to incur debt that brought the added burden of high interest cost.
James W. Stone, author of Spend Joyfully! (www.spendjoyfully.com) says that what is missing in their effort is a positive motivation to achieve a goal. A common goal shared by everyone is to use the working period of life to accumulate wealth that will sustain them when they get older and can no longer work. The way to measure progress toward this goal is to monitor your “Net Worth.”
Monitoring your New Worth can provide a useful way to measure how well you are doing to finance retirement.
- Net Worth is a more accurate measurement of your financial state than simply looking at how much debt you have.
- Raising your Net Worth is a positive “goal oriented” pursuit, whereas limiting spending and paying off debt only deal with eliminating the negative aspects of your financial situation.
- Everyone strives for independence in their senior years. A higher Net Worth helps make this possible.
About James W. Stone
James W. Stone is the author of Spend Joyfully! (www.spendjoyfully.com) an easy to read “how to” guide that explores the basics of money in life. The book is changing the way people spend and save money. Spend Joyfully! is available online in print ($15.95) and digital ($6.90) at Amazon.com, BarnesandNoble.com, SpendJoyfully.com and many other outlets.