This step-by-step guide empowers you to take action by building a complete financial portfolio. What is a complete financial portfolio? It is a term I use to define an individual who has fully-funded retirement accounts, is debt-free, has a six-month emergency cash reserve, owns diversified investments across different asset classes, and invests in themselves.
Before you begin building your complete financial portfolioSit down, take out a pen, and make a list of everything you own (e.g., assets such as cars, stocks, bonds, mutual funds, cash, bank accounts) and everything you owe (e.g., liabilities such as student loans, credit card balances.) Be brutally honest - don't keep something off the list because you'll "get to it tomorrow", or "it isn't a problem." The key to changing your life is to determine exactly where you stand now, in this moment in time. This balance sheet is going to be extremely important as we craft our way through the following steps.