I had dinner with two young couples last week. They’re about the age our kids would be if we had kids. Talk turned to this blog and then to financial choices in general. Both couples had questions about how to do a budget and I hope Mr. Ms. Liz and I were able to help.
One of them mentioned that wanting to buy that next toy keeps him motivated to sell more and make more money. The desire for the next bigger thing allows him to be his most productive self. He has said similar things in the past so this stuck with me and I’ve thought about it a lot.
I fear this approach keeps him on the hamster wheel–working really hard but not making lasting financial progress. It fills his garage with fancy toys but I fear it sets him and his family up for financial insecurity.
I’d love for him to get his motivation by achieving goals that relate to his family’s wealth rather than from acquiring stuff. I’m going to encourage him to start tracking his net worth and set aggressive savings goals that can only be achieved if he has a very productive year.
Calculating my net worth was my secret weapon to financial independence and early retirement. I calculate it monthly and I even calculate my monthly budgeted net worth when I set my annual budget.
What I Own
What I Owe
I keep it simple–I include only real estate and financial assets and deduct debt (credit card balances which I pay in full monthly). I don’t include vehicles though they should be included along with the balance of any debts. Here’s a helpful article on how to calculate net worth.
Do you have any suggestions on how to keep a high performing sales professional motivated?