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How A Monthly Net Worth Check Builds Financial Confidence · That Home Loan Hub

• 0:10
  SPEAKER_01: Hello.
• 0:11
  SPEAKER_01: And if you are thinking 2026 is the year for me, listen up.
• 0:15
  SPEAKER_01: We're going to teach you some easy to follow tools.
• 0:20
  SPEAKER_01: Tools?
• 0:20
  SPEAKER_01: Tips.
• 0:21
  SPEAKER_01: We're going to give you some tips.
• 0:23
  SPEAKER_01: We're going to give you some tips that you can follow in 2026.
• 0:26
  SPEAKER_01: All right.
• 0:26
  SPEAKER_01: I've got James with me.
• 0:27
  SPEAKER_01: Hello, James.
• 0:29
  SPEAKER_01: So net worth.
• 0:30
  SPEAKER_01: Your favorite word of 2025.
• 0:33
  SPEAKER_01: We're going to bring it into 2026.
• 0:34
  SPEAKER_00: My net worth is going to increase so much this year because my net worth is so low at the moment.
• 0:40
  SPEAKER_00: The only way is up.
• 0:42
  SPEAKER_00: I can't see it getting any worse than what it is.
• 0:44
  SPEAKER_00: So, but seriously, net worth is a really important tool for or calculator for working out how you're progressing over the long term.
• 0:54
  SPEAKER_00: So you want to see your net worth improve, you know, each quarter of the year.
• 0:59
  SPEAKER_00: And you can calculate it really easily.
• 1:02
  SPEAKER_00: So it net worth is a measure of how you how well you are managing your financial affairs.
• 1:10
  SPEAKER_01: Okay.
• 1:10
  SPEAKER_01: So on one side of the sheet, it will have all your assets.
• 1:14
  SPEAKER_01: Yep.
• 1:15
  SPEAKER_01: And on the other side of the sheet, it will have all your debts.
• 1:19
  SPEAKER_01: Yep.
• 1:20
  SPEAKER_01: And then you take one and take away the other.
• 1:23
  SPEAKER_01: And that that's your net worth.
• 1:25
  SPEAKER_00: In simple words.
• 1:26
  SPEAKER_00: Assets minus minus debt.
• 1:27
  SPEAKER_00: Okay.
• 1:29
  SPEAKER_00: So you think of all the things you own, and you know, the you know, you might, you know, it's going to be property, possibly your house, a cash.
• 1:37
  SPEAKER_01: Kiwi savers.
• 1:38
  SPEAKER_00: Yep, absolutely.
• 1:39
  SPEAKER_00: Kiwi saver.
• 1:40
  SPEAKER_00: You can children.
• 1:41
  SPEAKER_00: Children are an expense.
• 1:43
  SPEAKER_00: Okay.
• 1:43
  SPEAKER_00: Yep, they're going to the other liability.
• 1:46
  SPEAKER_01: Pets.
• 1:47
  SPEAKER_01: Pets.
• 1:48
  SPEAKER_00: Also a liability and an expense.
• 1:51
  SPEAKER_01: Okay.
• 1:51
  SPEAKER_00: Unless you're breeding them, I suppose.
• 1:54
  SPEAKER_00: That's just the way I look at animals.
• 1:56
  SPEAKER_00: I know.
• 1:58
  SPEAKER_01: But that's still a lot of cost to breed them, too.
• 2:00
  SPEAKER_00: Yeah, yeah.
• 2:01
  SPEAKER_00: So we've got these assets.
• 2:02
  SPEAKER_00: So you've got your house and your land, you've got your cash, you've got your Kiwi Saver.
• 2:07
  SPEAKER_00: Um, those are probably the three ones.
• 2:09
  SPEAKER_00: Oh, you've probably got your Sherzy's account these days.
• 2:11
  SPEAKER_00: You know, people have got maybe anything between 1,000.
• 2:14
  SPEAKER_01: Jewelry?
• 2:15
  SPEAKER_00: Jewelry, absolutely.
• 2:16
  SPEAKER_00: You can add in there, you know, and you can get that stuff valued as well.
• 2:20
  SPEAKER_01: Yeah.
• 2:21
  SPEAKER_00: So though those are those are your main asset classes, I would think.
• 2:26
  SPEAKER_00: So you add all those up to up together, and that's and that's your total assets.
• 2:30
  SPEAKER_00: So if I think of my case, you know, my house is about 800,000 in Palmerston North, mortgages about just over 200.
• 2:42
  SPEAKER_00: So based on that, about 600,000.
• 2:47
  SPEAKER_00: But I haven't I've still got to take off all the other debt.
• 2:51
  SPEAKER_00: So then on the other, on the right hand side of the table, we're looking at our debt or our liabilities.
• 2:57
  SPEAKER_00: So these are the things that you owe money on.
• 2:59
  SPEAKER_00: Okay.
• 2:59
  SPEAKER_00: And this is where it gets a bit more interesting because a lot of people only debt might be their mortgage, but nowadays you're getting, you know, you've got after pay credit cards.
• 3:11
  SPEAKER_00: Credit cards, car loans.
• 3:13
  SPEAKER_00: So all these things sort of add up, and and they can be quite, you know, a large amount.
• 3:20
  SPEAKER_00: So if you look at my look at my case, let's just say I've just got a house.
• 3:24
  SPEAKER_00: And house is worth 800, mortgage is 600, and I've got fifty thousand dollars of other debt.
• 3:31
  SPEAKER_00: So my net worth is$150,000.
• 3:34
  SPEAKER_00: $600.
• 3:35
  SPEAKER_00: No, no, no, it's$550.
• 3:37
  SPEAKER_00: $500,000.
• 3:37
  SPEAKER_00: $550,000.
• 3:38
  SPEAKER_00: I'm thinking very negatively today.
• 3:40
  SPEAKER_00: $550,000.
• 3:42
  SPEAKER_00: Yeah.
• 3:42
  SPEAKER_00: So what I want to do is if I make that calculation, is you just put it in a little Excel sheet or on a whiteboard, and then in a month's time, you can do it every month at the beginning of every month.
• 3:54
  SPEAKER_00: You just look at the value.
• 3:55
  SPEAKER_00: Your house value is probably not going to change a lot.
• 3:59
  SPEAKER_00: But your Kiwi saver should go up, should be going up over the long term.
• 4:03
  SPEAKER_01: It'll have and hopefully your debt will come down.
• 4:06
  SPEAKER_00: Yep.
• 4:06
  SPEAKER_00: So those there's two ways you can improve your net worth assets up and reducing your expenses.
• 4:12
  SPEAKER_01: So that's a really good exercise to do that in the beginning of the year.
• 4:16
  SPEAKER_01: Yep.
• 4:17
  SPEAKER_01: Especially to start to get into a habit because everyone, you know, comes out with a lot of energy in January and I go, cool, I'm gonna do this, I'm gonna go do that.
• 4:25
  SPEAKER_01: But if you were to commit to something, I think that's a really cool exercise to commit to because at the end of the year you should be able to see clear progress.
• 4:33
  SPEAKER_01: And even if you just do it in January, March, sorry.
• 4:37
  SPEAKER_01: Yep, every quarter.
• 4:38
  SPEAKER_01: Every quarter in the beginning of each season, if you do that, even that would help.
• 4:43
  SPEAKER_00: Absolutely.
• 4:44
  SPEAKER_00: I think it would be really cool if you did it on the first of every month.
• 4:47
  SPEAKER_00: It's a really easy thing to do because all you've got to do, we've got a whiteboard there, you just list your assets.
• 4:52
  SPEAKER_00: I've only got three or four.
• 4:53
  SPEAKER_00: You don't have to get into all the nitty-gritty like the bicycles and and all that kind of stuff.
• 4:58
  SPEAKER_00: Do you want to mean just put in your key, your main assets and all your debt.
• 5:03
  SPEAKER_00: Yeah.
• 5:03
  SPEAKER_00: And then at the beginning of each month, you just go online, you know, you look at your key receiver balance, you look at your cash balance, and you just jot it down.
• 5:13
  SPEAKER_01: Hold it, thought.
• 5:15
  SPEAKER_01: Hold it, thought.
• 5:16
  SPEAKER_01: Matt, this is where you have to cut it out because the bell's gonna ring a bell right now.
• 5:44
  SPEAKER_01: Matt, we're back.
• 5:47
  SPEAKER_01: So we were talking about net worth.
• 5:49
  SPEAKER_01: And as you were saying, we don't have to list the all of it.
• 5:54
  SPEAKER_01: We just have to list the big things.
• 5:56
  SPEAKER_01: So if you are getting overwhelmed that, oh my god, how am I gonna put a value on all my jewelry, all my bicycles, all my stack of cards that I've been collecting since I was five.
• 6:07
  SPEAKER_01: Yeah, you know, the stock of cards or Pokemon cards or whatever they have.
• 6:10
  SPEAKER_01: Just list the big items.
• 6:12
  SPEAKER_01: List the items that are easy first.
• 6:14
  SPEAKER_01: And then as you get better, you know, that could be the goal for 2027.
• 6:17
  SPEAKER_01: So let's say January 2027, you get a little bit more detailed.
• 6:21
  SPEAKER_01: But just for 2026, keep things easy, keep them simple.
• 6:25
  SPEAKER_01: Maybe have a house, mortgage, yep.
• 6:30
  SPEAKER_00: Yeah, car, loan, yep, any cash, your kiwi saver on the asset side.
• 6:37
  SPEAKER_00: And be be sure to include all your debt on on the on the liability side.
• 6:42
  SPEAKER_00: You know, you wanna you want it to be a really fair reflection of where you're at.
• 6:47
  SPEAKER_00: So you only I tend to put when I'm putting my assets in, like I'm really honest about the value of my cars, because they're really not worth that much.
• 6:55
  SPEAKER_00: And they tend to go down, well, they do go down in value.
• 6:58
  SPEAKER_00: So just be a bit wary of putting in your the purchase price of your car as your asset value.
• 7:05
  SPEAKER_01: Also remember this picture that you're painting right now is for you only.
• 7:12
  SPEAKER_01: It's not for the bank, it's not for your mortgage application, it's not for anyone to be impressed by.
• 7:19
  SPEAKER_01: Yeah.
• 7:20
  SPEAKER_01: The only person you're impressing here is you.
• 7:22
  SPEAKER_00: Yep.
• 7:23
  SPEAKER_01: And I think this is sometimes what people forget is that they're so caught up in the world of what do I need to provide to the bank?
• 7:30
  SPEAKER_01: What do I need to provide to my mortgage advisor?
• 7:31
  SPEAKER_01: What do I need to provide to my insurance place?
• 7:34
  SPEAKER_01: They forget about themselves.
• 7:35
  SPEAKER_00: Yeah.
• 7:36
  SPEAKER_01: So I think this is an exercise for you to build back your own confidence in who you are and where you're going and where have you come from.
• 7:45
  SPEAKER_00: Yep.
• 7:46
  SPEAKER_00: It's really cool to see a progress.
• 7:48
  SPEAKER_00: So you can see a few months of it maybe staying the same, and you might feel a little bit, you know, this is not working.
• 7:55
  SPEAKER_00: But then it it might it'll it should start jumping up.
• 7:58
  SPEAKER_00: Now, if it's not going up, or even if it's going down, that tells you something about what you're doing in your financial life that you're spending more than you earn.
• 8:08
  SPEAKER_00: So it's a really good measure of you know, because in theory, you should have money going to that Kiwi saver every month, so it should be going up.
• 8:16
  SPEAKER_00: Your your mortgage and your debt should be going down, you should be paying it down.
• 8:20
  SPEAKER_00: So that should be an improv improving over the over over the quarter.
• 8:25
  SPEAKER_00: It doesn't have to improve every month, but over the quarter, every quarter, you want to see some improvement.
• 8:30
  SPEAKER_00: And if it's not improving, you need to have a look at your financial affairs.
• 8:34
  SPEAKER_01: And maybe that's the time when you need to talk to someone like us and understand why it is going down.
• 8:40
  SPEAKER_01: Yeah.
• 8:40
  SPEAKER_01: Why you are not moving from position A to position B.
• 8:44
  SPEAKER_01: And what can you do to improve that position?
• 8:47
  SPEAKER_00: Yeah, I love talking to people about net worth.
• 8:49
  SPEAKER_00: So if they could uh if they want to give me some numbers or whatever, uh and and that they want me to have a look at it, that would be really cool.
• 8:55
  SPEAKER_01: Okay, awesome.
• 8:56
  SPEAKER_01: Well, James, thank you so much for uh sharing your wisdom today.
• 9:00
  SPEAKER_01: And for those that have missed out, we did do a massive episode on net worth.
• 9:04
  SPEAKER_01: I think if you just go on our channel and uh put uh the word net worth in a search bar, that should come up to you with that episode that James and I did and all the tools.
• 9:14
  SPEAKER_01: But if you are feeling confused, if you need someone to hold your hand, please feel free to reach out to us.
• 9:18
  SPEAKER_01: We'd love to help you.
• 9:19
  SPEAKER_00: Thank you.
• 9:20
  SPEAKER_00: That'd be cool.
• 9:21
  SPEAKER_01: Bye.
• 9:21
  SPEAKER_01: Bye.