Net Worth Hacks

Today, Ken tackles the idea of budgeting. For some, budgeting spurns negative emotions, when in fact it can be an empowering concept. Ken shares his experiences sharing the idea to budgeting with his wife and how her worldview was not the same as his. To some budgeting seems natural and essential, to others it seems evil and restrictive. Ken found that reframing the concept of “budgeting” to “prioritization” was the best way to overcome the negative associations of budgeting. Ken shares how to iterate your mindset regarding budgeting; He discusses the myths surrounding budgeting, clearing up some misconceptions. Budgeting, if done right, can actually be empowering and not at all a bad thing. 

Now that you understand the IMPACT Model (ep. 3-8) and how to improve your net worth, it’s important to understand and track it. In simple terms, your net worth is assets minus liabilities. Ken goes on to explain the reason why we as individuals measure net worth is because it is the sum total of all of our life’s financial activity. It is a clear summation of your financial situation without all the noise of transactions, credit cards, loans and so forth. It allows you to measure your progress. In this episode, Ken helps you calculate that bottom line number, and understand what areas to look at. How often should you check your net worth? What is the best way to track this number? Ken talks about all this and more.

We made it, the final letter in the IMPACT Acronym: T – Terminate Debt. Much like cultivating assets, terminating debt directly impacts your net worth. For every dollar you pay towards paying down your debt, your net worth increases by that same amount. In addition, as you pay down your debt, your risk is mitigated. Debt magnifies financial outcomes, either for better or worse. Ken uses examples of real estate and graduate degrees as a means to explain this magnification as well as the risk and reward of debt.

Ken discusses how the first four letters in IMPACT set you up for the last two: Cultivating your Assets (letter C), Terminating your Debt (letter T) or both simultaneously. Then Ken goes on to discuss cultivating your assets. First and foremost, it is important to understand that your first asset is yourself. You must be willing to invest in yourself such as going beck to school or growing your skill sets. Moving from there it’s important to look to all aspects of your life and determine what exactly are your assets? Could be things such as your savings or even your car. Ken discusses ways to cultivate these assets, whether it be by doing it yourself or relying on others. Finally, Ken discusses how it’s critical you understand the risk of any investment and finding that balance between growth and risk exposure.

How do you align with your partner when it comes to money? On this week’s episode, Ken discusses the A in IMPACT, Align with Partner and Waterfall. To empathize partner alignment, Ken recounts the first time he rented an apartment after college and how he needed to account for his fiancee. As the two began a family, Ken began to learn about partner alignment and how it is critical for success. Ken then discusses his survey regarding alignment among partners, giving his insight into the findings. Ken also responds to some surprising comments provided by the sample group.

On this week’s episode, Ken discusses the letter P in IMPACT. The letter P stands for Prioritize the Waterfall. Ken discusses the metaphorical waterfall and what it means in the business world and how it applies to your income. A cascading waterfall fills up pools of water as it trickles downward. Learn how handling your income is much of the same. Your income is the waterfall and it’s critical that you understand what that first pool of water is that needs to be filled up before any money can go anywhere else. Finally, Ken talks about how if you want to build your net worth, you must re-prioritize your waterfall to meet that goal.

On this week’s episode, Ken discusses the letter M in IMPACT which  stands for Maximize Income and Joy. Ken shares another anecdote from his youth, this time his first ever job as a Little League Umpire. Using his umpire income as a tool, Ken explains income concepts including time constraints, valuation, as well as active and passive income. Ken goes on to discuss the benefits and setbacks of these two forms of income. Taking it a step further, Ken discusses how you must also find joy when maximizing this income.

On this week’s episode, Ken dives into the I in IMPACT. I is for Iterate Mindset and Process. Ken shares a story from his college days where he learns the value of iterating from a tough-but-fair entrepreneur professor who tore into his business plan weekly. Ken shares how he learned the value of finding that balance between being hungry for progress and content with your steady growth. Always strive to improve but don’t beat yourself up. Another mindset that is critical to avoid is paralysis by analysis. Once you’ve iterated your mind it’s time to iterate your process. Ken dives into all of this and more on this week’s episode. Every journey starts with a first step, or in this case the first letter!

On this week’s episode of Net Worth Hacks, Ken Kaufman recounts his journey into the world of finance and net worth. Then Ken introduces you to the 6 key principles that act as the guidepost to achieving net worth success. Learn about these six principles using the acronym IMPACT: Iterate, Maximize, Prioritize, Align, Cultivate, Terminate.

It's the premiere episode of the Net Worth Hacks podcast! Join Ken Kaufman as he provides valuable insight regarding your net worth and why you should be tracking it. Likening your income to a precious resource, Ken discusses the draining factors that are diminishing your net worth.