Net worth is the value of all your assets minus the amount of all your debts. Assets are items you own that have a value other people will give you money to obtain. Debts are amounts of money you owe someone else via loans for the purchase of material goods and/or services. Debts are liabilities. It is not good to have a lifestyle based on incurring liabilities instead of building assets. Assets are the items that lead to building wealth far beyond what your natural eyes now see.
You should calculate your net worth at least annually to determine how successful your financial plan or lack of one has been for you. You want to see an ever increasing surplus and not a deficit because this means you are continually moving in the right direction. Do not be dismayed if when you first calculate your net worth you have a deficit. Simply understanding that the LORD has given you principles to live by in managing the money He entrusts to you and has given you spiritual power to help you utilize methods that comply with them. In this way, you are sure to reach a surplus within the next few years and build it into more as you move forward throughout this life.
By dividing your average monthly expenses into your net worth, you are able to identify how many months into the future you could pay current debts and expenses if you are laid off or lose your income. This measure is necessary for short-term and long-term planning because income reducing emergencies, hardships, and catastrophes will occur for short periods of your life such as job layoffs, having to leave a job to care for parents, pay reductions due to a poor economy or business troubles, etc. Yet, managing your income to continually grow net worth will help you weather the storms of adversity because the blessing of God and rewards are produced in your life when using His principles, financial and otherwise.
Contrary to popular belief, bible scriptures and stories support wealth building (increased net worth) and shows that it happens for faith-filled people who abundantly give to spread the gospel message, make disciples of other people, and manage the financial areas of their lives in accordance with biblical principles such as planning (goal setting and budgeting), eliminating debt, refusing to cosign, saving, investing, and diversifying assets. It does not make you greater or better than anybody else and it pleases God for you to continue to grow in humility and meekness as you build and not become a respecter of persons. He is definitely pleased when you are intimate with Him and a good steward of His manifold possessions entrusted to you.
Please pray for this ministry and email any questions. May the LORD bless you richly as you follow His plan!
Genesis 13:2, 1Chronicles 29:2-5, Job 42:12, Acts 4:36-37, Matthew 27:57-60, James 5:1-5
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