They kick off by defining what net worth is and talk about why it matters. But they’re sure to point out that net worth isn’t self-worth. It’s just a part of your wealth. Since net worth is the value of your assets, less the value of your debts, they discuss some examples of assets and debts. They all agree that your primary home is an asset. Understanding and tracking your net worth helps you make financial decisions. Adam and Emily track their net worth and income statement monthly, and Lauren wonders if that’s cumbersome. They outline how often they update their real estate numbers. They use software to help track. They started 11 years ago, when they had just started dating. Lauren asks what couples should do when one member isn’t as into personal finance as the other. They say you should try to take an interest in what your partner is up to, even personal finance! And the financially minded one should make an effort to bring them in. Think of it as a monthly money date. Emily points out that if something happens to the person who solely understands finances, that will put the remaining person in a tough spot. They also discuss cash flow versus net worth. Cash flow matters! Don’t have dead money sitting around doing nothing. In many cases, it makes sense to grow your net worth early in life then transition to focusing on cash flow. Lauren points out that even if this stuff sounds overwhelming, you should start slowly and build up momentum from there. You don’t want to look back 10 years from now and wish you started today. Adam closes out the conversation by reminding us that even though net worth is very important, it’s not the only important part of your overall life. It’s just a part of it.

Book:

Buy This, Not That by Sam Dogen

If you liked this episode, you’ll also like episode 173: Passive Income with Andrew from The Personal Finance Podcast, 167: Using Assets to Retire Early. And many, many others.

About A&E:

Adam Roberts and Emily Cortright, both engineers by profession, transitioned from their corporate careers to real estate in 2013, initially focusing on single-family properties. They have since diversified their portfolio through multi-family syndications and by venturing into mortgage notes.

They aim to inspire a wealth-building mindset through their roles as mentors and educators. Adam serves as a coach for a prominent multifamily education program, while Emily educates on wealth-building strategies at Keller Williams offices nationwide. They live in Fort Worth, TX, and they balance their professional pursuits with travel, healthy lifestyle, live music, and family time with their 3-year-old daughter.

Connect with A&E:

https://www.instagram.com/ae_investments

https://www.linkedin.com/in/adam-roberts-23918aa/

https://www.linkedin.com/in/emilycortright/

https://www.aeinvest.net/

Connect with Lauren:

https://twitter.com/AdultingIsEasy

https://www.instagram.com/@adultingiseasyreal

https://www.housemoneymedia.com/