Overcoming Debt, Achieving Financial Freedom

Chapter 12Your Financial Roadmap

Now that you understand the eight pillars to build wealth, it is time to implement them! In this chapter, you will find checklists for each pillar and helpful templates to guide you through your journey to financial freedom.

Pillar 1: Take Inventory of Your Numbers

• Calculate your assets (what you own).
• Calculate your liabilities (what you owe).
• Calculate your net worth.
• Determine how you will track your net worth (e.g., pen and paper, spreadsheet, app).
• Calculate your monthly income.
  • Review your paycheck, including taxes and deductions.
  • Review your revenue sources (if self‐employed).
• Calculate your monthly expenses.
  • Review the past three months of credit card and debit/bank transactions.
  • Review your subscriptions and cancel any that no longer serve you.
• Calculate your monthly savings and investments.
• Calculate your monthly debt payments.

Net Worth Tracker Template

Copy this template into a notebook or spreadsheet software to calculate your monthly net worth. Update your numbers once a month, preferably the same time each month.

[MONTH] NET WORTH
ASSETS		LIABILITIES
Category	Amount	Category	Amount
Checking account	$2,800	Car loan	$10,000
TOTAL ASSETS	TOTAL LIABILITIES
Net worth formula: Total assets – total liabilities = net worth
[Insert Month] Net Worth:

Four Core Monthly Numbers Template

Use this template to get you started on gathering your four core monthly numbers.

FOUR CORE MONTHLY ...