Recipe For Financial Freedom

In the past week Canadian Financial stuff has put up a post on financial resume. I got really inspired by the post and started to prepare my networth statement. While preparing it I realized an important term which is missing from my balance sheet.

“Goodwill” is the element that I cannot quantify in my balance sheet while calculating my net-worth/self-worth. This prompted me to think over intangible assets for an individual that can’t be quantified but forms the basic part of one’s individual financial health. A little thought and I came up with the following:

• Health: Physical and mental fitness is of utmost importance while considering your intangible assets. Try to refrain from unnecessary stress and work pressure. Stress drains out your energy which can be put into some positive or constructive work.

• Time Statement: The importance of time and its management has been mentioned many times, but I want to put emphasis on time statement. Do we keep a time budget by estimating our time expenses as we keep a monetary budget by estimating our future expenses?

• Career: Can career be an asset? Yes it always is! It gives a source of steady income. But have we considered enhancing the value of our career by trying out different strategies e.g. focusing on our core strengths and weaknesses.

• State of Mind: The only thing that you can control 100% in this world is your mind. And if you can be positive towards the externalities of life good or bad then you build up your confidence as an asset over a period of time. Your mental stamina increases towards the downs of your life.

• Discipline: This is the most important intangible asset that helps you to manage all the four assets mentioned above. Discipline can provide you best asset allocation and growth for the future.

Coming up with strategies to invest into such assets your networth will show a drastic increase in the tangible or quantifiable assets.