Welcome to Stewardship Matters Podcast #1 (listen to me on home page tab podcast)
In this episode we will address very important and often a negative or limiting mindset regarding “what do you have in your hand?” Take inventory of what you have and what your owe to others. Some refer to this as personal “Net Worth Statement”. Hear this you are so much more than numbers on a page and the values on this financial balance sheet. It is only a portion of your story however still important place to measure.
Some ask what is balance sheet or net worth statement? Make two columns and on the left side write down asset names and values as of this month. On the right column write down the liabilities and the current amount owed such as loan or credit card balance. Next add all the assets in the left column and total that and then add up all the right column liabilities and then subtract the liability total from the asset total and that represents your financial net worth. Make sure you date this as it will be helpful in the future to look back on it.
Again Balance sheet or net worth statement is only a portion of your life reflected on paper. For some the numbers will be large and for others the numbers could be negative. What are couple of reasons for negative net worth? Just graduated college with student loans greater than assets, maybe recent divorce with other financial strains such as medical. Important note to self: Do Not Let This Position Define You. You are more than this financial exercise.
Why do I say there is more to your life than net worth or balance sheet? Because you have values not reflected on paper. Value as human being, as a friend or family member, as community participant or as marketplace employee or volunteer. You have talents maybe visible and maybe not visible and your relationships have value. You deposit into others means a lot to the community.
Again let me ask “what is in your hand or what do you posses or steward?” Both tangible and intangible. What might seem little to you may be rather significant to others. I am reminded of scene during first century as a crowd gathers in the countryside and Jesus is speaking to them and it has been a long day and people are hungry. Now there is estimated that there are about 5000 men plus women and children there. Some of disciples tell Jesus to send the people away as they are hungry and have needs. Jesus say you feed them. They reply not enough money to buy them food. Jesus ask what do you have to feed them? They find one boy with two fish and five loaves of bread. Jesus tells them to gather the people in groups and get some baskets. Jesus prays over the food and distributes until everyone was filled and then 12 baskets left over.
Today as I hear this I am reminded to share and pray that what I have will multiple and bless others.
Getting your assets and liabilities on paper in net worth format is helpful for knowing where you stand and what you have and it is measuring device to see progress as you look at this again next year. Do this periodically and get feedback. Have you sought out wise counsel or wise friends to help you discuss ways to increase assets and ways to reduce liabilities to grow your balance sheet? What I have found after decades of helping others grow their balance sheet is that there is more to this than simply money. Share your relational capital with others especially when your motivations are shared with others that are aligned.
Back to your asset column- Are there items missing from you list that should be added? Do you have access to a resource you overlooked the first pass on this list?
Allow me to share a story of Nancy who is retired and living on fixed income and in a small house and wants to be generous to others. I asked her what are some things you enjoy doing currently and is there a way to share those things with others? She replied I love gardening and reading. She grows vegetable and flowers and shares excess with others and really loves it. Transplants flowers and grows from seeds beautiful flowers and finds discarded pots and gifts these flowers to others. She reads to children in local school and gives the teacher a break and allows greater connection for Nancy to be appreciated in the community. She invest in others and is living a rich life full of purpose in the things she loves to do. She is building a community of friends.
Maybe there is talent you are really good at and it could provide additional income source as a side hustle for you and your family. Nancy in the previous story has good sized yard and has experience in gardening and effective and efficient with her methods and could turn this into a cottage business to sell at the local farmer’s market.
Do you posses a skills or equipment or expertise that you could share with others- simply asking this question out loud often triggers thoughts that can lead to actions and open doors for you and others. Maybe you have a pressure washer and can share with a neighbor and they have chain saw they could share with you- this is example of we don’t need to own everything and store it. Or maybe you are going to rent a piece of equipment and mention it to neighbor and share the cost of rental with them?
Let’s shift briefly to intangibles not listed on your asset and liability columns.
Several years ago I was struck by comment made to me by a recent retiree. You wait Scott when you get to be my age things don’t work so well and I spend many hours a week in doctors offices for exams, procedures and follow up appointments. I asked this person about his health routine during his working years- “well, I ignored it as too busy and no time.”
This was a wake up call to me to get intentional - get outside, work out, eat better, sleep more and learn more about healthy choices in everything.
We all know someone that worked hard and retired and died shortly after they retired from working.
The Ohio State University behavioral science graduate students asked recent retirees a survey of questions we will call “Happiness Survey” and found that four prominent items rise above all the other things in life to be happy as retiree. 1) mobility 2) heath 3) socialization 4) positive cash flow.
All of these items are interdependent on each other- I would say that for all of us these four items motivate us as well prior to retirement age.
Here are a couple of questions I love to ask people: Have you ever played the game of Monopoly? Most have :) Well does anyone ever win the game simply by passing go and collecting $200? All answer NO! Well like Monopoly we should invest in stocks, bonds, real estate, house, hotels and more. How we each go about that process varies a lot. Those only focused on collecting $200 are budget focused and ignore balance sheet and those only focused on balance sheet and not budget are not seeing bigger picture as well. There is interdependent relationship here and getting some professional help maybe a wise investment for you as you work out your journey of abundance and freedom. How you steward or manage matters.
Quick Recap
- Create Financial Net Worth Statement
- Ask what you have beyond the financial
- What can you share with others
- We all need wise counsel or truth spoken into us
Consider reach out to talk with Scott Thomas about what is in your hand and how you may steward it well.
Check out some additional resources at www.stewardshipmatters.net