What’s Your Net Worth?

MONEY MATTERS WITH DR. ANDREW LEE

The question posed in the title of this month’s column has multiple meanings. First, when was the last time you tabulated your own net worth, financially speaking? It’s an important metric, and wealthy and financially successful people know their net worth and monitor it often. Simply make a list of all your debts (liabilities) including mortgages, student loans, car loans, personal loans, lines of credit, as well as any credit card debts, medical bills, and so forth. Then, make a list of all your assets—money in savings, investment accounts, equity/value of real estate owned, cars, personal property, collectibles, etc. Subtract your debts (liabilities) from your assets, and the amount left over (if any) is your net worth. If you have more liabilities than assets, you have a negative net worth (hopefully not). For 2020, the median net worth for U.S. households is $97,300— meaning that half of all U.S. households have a net worth greater than this, while half of households have less.

You may have heard this catchy maxim: “Your network determines your net worth.” This means that the people in your life (your network) will play a role in determining how financially successful you are. So, if you spend all your time with people who are financially illiterate or undisciplined with money, you will likely follow suit. But thankfully, we have control over our “network” and can make changes to improve our social connections by “networking”—meeting successful people and emulating their good money habits. Your network, friend group, or social circle do not have to remain stagnant. You always have a choice to reach out to others whom you admire and expand your network over time. After all, I’ve never heard of anyone who had too many friends (except maybe on social media). 10 // December 2020

Dr. Andrew Lee is professor of English at Lee University. He also serves as a coordinator for Dave Ramsey’s Financial Peace University. He and his wife Esmerelda have three children.

Finally, let me pose the question again in a different context: “What’s your net, really worth?” What if your “net” includes your sphere of influence, as well as your talents that God has blessed you with, which you can use to “catch” others whom God puts in your path? And what if by using your “net” to “catch” and pour into the lives of these people, you can be a positive influence on others—spiritually, emotionally, and financially? So how far does your “net” reach? Do you spend every week and weekend within the same confined sphere of influence, never reaching beyond your comfort zone, never taking a risk to change your routine and meet new people? What does your “net” end up catching usually? Anxiety? Discontentment? Envy of others? Or does your net catch joy, love, grace, peace, and hope? The lives we reach with our net (gifts, talents, relationships), can reap an abundant harvest both in this life and in eternity for God’s kingdom.

Once you’ve “caught” something in your net, what are you going to do with it? You decide. Do you throw it back? Or like the good steward in the Gospels who had ten talents, do you maximize your “catch” to help it reach its fullest potential? And remember, your net definitely includes your finances. How far does your financial net reach? Are you able to give generously to worthy causes? If not, consider making your net stronger by being intentional about your finances: track your spending, commit to save at least 10% of each month’s pay, invest for future growth, and make a regular habit of giving away some money each month. Strengthen your “net” and watch God reward your diligence and intentionality. As the disciples discovered in Luke 5:6, your net may soon be overflowing with blessings!