Happy new month and may we move a step closer to our 2020 goals. January is an exciting moth for many of us; new year, new jobs, new goals and soo much more. Our energy levels are just right and we have all the motivation we need to get us started. I hope you make time to reflect on what you want out of this year.

Personal balance sheet

I wrote an article last year assessing how much are you worth. Please re-visit that article to understand what principles we are using  in this assessment. As I continues reading a book this weekend , the topic came up again and I decided to do the personal assessment.  The author of this book also emphasized that in his career as a financial advisor, he does not believe in giving advise that he would not personally follow.

To get to this point, I had to assess a few things that I need. This included finding my latest investment statements and seeing how much money I have there and also getting my liabilities statement to see how much I owe. The end goal is to ensure that I understand where I stand financially as at 31 January 2020.

The good thing that came out of this is that I am in a positive net asset position valued at N$ 292 744. Meaning I can sleep well at night. If my creditors were to come today at me, I will be able to sell some of the assets that I have to settle my debt and still be able to move on with life.

I have also decided to exclude certain assets from this exercise to  make the exercise less administrative in nature. I did not include any house content such as TV’s , bed etc. But this is optional.

The end goal for me is to reduce the debt level to minimal and improve the net asset position. I personally do not believe personal debt is a good thing unless you are using it to acquire income generating assets.

As we end 2020, I would love to see at least 10% in the net asset value and reduce my debt to asset ration to under 45%. As at 31 January 2020, 53% of my assets are funded by the bank. How much is your debt to asset ratio?





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