Ask the Money Lady,
I’m in my 50’s and was laid off work because of COVID. With all of this extra time, I’ve been trying to understand my finances a bit more. My ex-husband always dealt with our money, but now that we’re not together anymore, I’m not sure where to begin.
Let’s face it, after the year we have all been through, there are a lot of people finding it tough. COVID has changed the life-landscape for all of us. You are making the right decision to consider planning for your future. One of the first steps in doing this would be to determine your net worth.
Your net worth is the total value of all your assets minus all your outstanding debt. Start with adding up the value of your assets, such as cars, homes, investments, life insurance, RRSPs, or even cash. Then subtract all your debts, which would include balances on credit cards, lines of credit, mortgages, loans, or upcoming unavoidable expenses. Do you have a good positive net worth number or is your number a negative? A negative number will mean a life change is imminent and perhaps you are carrying more debt than you should. How do you feel about your net worth number?
Victoria, when you have determined your net worth, you can now decide how you want to change things. Good or bad, we all have to live with the outcome of our choices. Why not partner with a finance coach or financial planner to help you. Don’t do it alone. Financial planning is designed to motivate clients to make changes, discuss trade-offs, and sometimes work through difficult decisions that may be necessary to ensure a comfortable future. Your finance coach should help you ascertain real risks and be flexible to your needs. Most of all they should partner with you to help balance your budget, spotting possible blow-ups and removing the risk to your family’s finances. It’s impossible for you to know everything, and believe me, the internet is not the fix you need to get your finances in order. Find a finance coach that will work with you, one that you feel you can partner with and one whose every intention is to help you get debt-free and wealthy!
Good Luck and Best Wishes,
Written by Christine Ibbotson, Author of “How to Retire Debt Free and Wealthy” Follow on Facebook & Instagram