V. Financial Equity
“Know what you own, and know why you own it.”~Peter Lynch
Financial equity is the value of your real and financial assets that can be priced, sold, and traded net of any debt you owe. It is sometimes called “net worth.”
Building financial equity is a process. Use your map to understand how the money around you works and start building real and financial assets one step at a time. Plan, budget, and conspire with the people around you to build and protect family wealth. Use your understanding of how to build living equity to help you build financial equity, and use that financial equity to protect your living equity—they are two sides of the same coin.
Again, you want to do business with the highest-quality people possible, whether attorneys, accountants, insurers, or others. You also want them to know you and establish a relationship with them before you need them. Stay on top of your financial accounts and invest in your archives because reality is what you can document in a marketplace and in a court of law.