Troy Wagner
247 centennial parkway N L8E 2X3 Hamilton, ON, Canada

Ok, now it's time to calculate your financial inventory. Grab your recent bank statements along with your drink of choice and have a seat. Review your most recent bank and investment statements for all your holdings. You want to take an inventory of each item and identify the most current date to provide you context.... Add up all your assets (A) and deduct all the liabilities (L) and you will calculate a net worth (NW). The equation is A - L = NW

We hope you've been enjoying our last few posts! Today we wanted to touch on why financial goals are so important, no matter your age. Setting financial goals provides a road map and plan to build wealth and places you on the path for financial independence.... It is critical to establish achievable time horizons so that you can plan your financial milestones properly. The key to success really is a proper plan!

Do you know the difference between assets and liabilities? Assets are items that have a positive value to your net worth such as bank accounts, emergency funds, retirement accounts, investments, jewelry, art, property, vehicles, etc. Liabilities have a negative value to your net worth such as loans, credit cards, mortgages and... lines of credit. Something to keep in mind however, is almost all vehicles are depreciating assets. So that fancy new car you just bought will become an asset but it will lose its value over time.

A financial plan allows you to determine your financial situation at a given moment. It should include looking at all your assets and liabilities, calculating your net worth, establishing what your goals are, and what methods you are going to employ to achieve them.... This means taking into consideration all your assets - how much you get paid, what's in your savings accounts, investments, what's in your retirement fund - as well as your liabilities including loans, credit cards, and other personal debt. Don't forget to include expenses like your mortgage or rent, plus monthly utility bills and other monthly expenses. The snapshot should also factor in what your goals are and what you'll need to accomplish in order to get there. This could include retirement planning, investment strategies and tax planning.