Measuring net-worth is a pretty linear process for many people/businesses. Just subtract your liabilities from your assets, and voila you have your net-worth. Right?
Where I live (USA), we all are dealing with a new paradigm. Some of us know it, some of us are denying it and some of us are just wondering in the desert. Regardless of where you fall on that list, change has come. Our lives are different and I sense it's permanent.
It's interesting to me how old habits die hard. Many are still rather obsessed about money and career. Still partying on the Titanic I guess. But what if money and career are only a part of your net-worth? Sort of like two rooms in your house versus the entire dwelling.
In our work we advise people to see their net worth in way that is representative of their entire life…8 areas specifically. The illustration below will reveal what those eight areas are:
If I asked you to calculate your net-worth based on the wheel, how much would you be worth? Are you in the black or in the red? How prepared are you for the harsh winds of change? And by the way, there are some who make six-figures who are actually very poor. It is tragic.
I think you've probably figured out that my post is not designed to get you to abandon money and career. But it is designed to get you to put things in their proper place. A place where you begin to integrate the 8 areas in a deliberate way.
Yes, it is tough work.
The take-away here is found in that new paradigm. If you think focusing only on career and money is a sound strategy, then I have some bad news for you. It worked (or so we deluded ourselves into believing) during the days of continual prosperity. But the truth is, it never worked and it certainly won't work now. We have now entered into an age where the danger of ignoring/neglecting our total life will produce catastrophic results. Maybe you've lost your job of 20 years and you never took the time to pay attention to your mental health, so managing the stress of job loss is crippling. Maybe your marriage has crumbled around you and your wondering why you didn't spend time listening to your spouse's needs. You get my point.
Turn around while you can, things have changed. If you're wondering how this work is accomplished, then stay tuned. We'll be working with our strategic partner Take Time for Life to present an experience that will show how managing your life (totally) can be done.
