Baby Got Back [Love Your Assets]
Big, voluptuous, firm, and juicy asses are getting tons of attention online and in the modeling world. So, it’s safe to say that these asses are huge assets. When it comes to assets, liabilities, and cash flow – you need to get in the game and know what you’re working with as soon as possible! No, I don’t want you to post your ass or assets online…although I’m always excited to see pictures of firm, juicy assets. The goal here is to get your assets in shape.
Dirty Little Action Steps:
1: Once your budget is complete, you can determine free cash flow (income – expenses = free cash flow)
2: Give your free cash flow a JOB, and then it can go to WORK for Y.O.U.
3: Create SMART (Specific, Measurable, Achievable, Realistic, and Timed) goals for your cash flow. Examples may be related to paying off x, y, and z debts, increasing investments by x%, or saving 3-6 months of expenses as an emergency fund.
Dirty Little Secret:
- Assets are things that have value and are beneficial to Y.O.U. (ie: cash, stocks, bonds, paid off car, paid off house…)
- Liabilities [debts] are obligations that we owe money on (ie: credit card debt, car debt, taxes). The reason you don’t see school or mortgage debt in either category is because it can be argued that reasonable amounts of school debt and housing debt are not necessarily BAD. In general, we want to reduce our debt by putting our free cash flow to work.
Cash Flow is how much cash flows through your hands each month. Having a plan means that you will SEE the money, and then give it a JOB and put it to WORK for you. As you reduce your debt, your cash flow will likely increase (ie: credit card 1 had $1,000 balance, $50 min. payment. Once that is paid off, then you will have $50 per month to WORK for other JOBS).