If you want to get somewhere, you need to know where you are. Listen to Wayne and Lisa as they explain the first aspect of the financial GPS system and learn what numbers matter the most when it comes to reaching your financial goals.

• Money enables motion.
• Financial planning is all about where you are going. If you don’t know where you are going, any road will lead you there.
• Back in the day, we used paper maps to figure out where we wanted to go. Similar to a map, you set a financial goal and then figure out the path to get there.
• To use a GPS you need to have two pieces of information. You need the destination and your starting point. It’s the same with your financial goals.
• Wayne and Lisa go over an example situation where they need to plan for a 16 year junior to pay for college in the next couple of years. The situation changes quite a bit if your starting point is a 5 year old instead of a 16 year old.
• You use a different kind of GPS to understand your financial location, in this example, you use the Gain Position Security system.
• We are often starting in the middle of our financial journey. Your Position is essentially a tally of your assets compared to your liabilities. Your net worth is any amount over and above your liabilities.
• An asset is defined as an economic resource that can be owned or controlled to produce value. The key part of the definition is the ability to convert the asset to cash. Examples include your 401(k), retirement account, or property.
• Liabilities are defined as the future sacrifices of economic benefits that we are obliged to make due to past transactions or events. The key point of a liability is the future sacrifice.
• Most people take out a mortgage to buy their house, which ends up being a liability. When you sell the house, the lender gets paid first before you.
• All your assets and liabilities have to be added up and compared to fully understand your financial position.
• When the value of your assets minus your liabilities add up to over a million dollars, you are officially a millionaire.

To explore working with Wayne Firebaugh to fireproof your money, please call 855-WAYNE KNOWS or check out at fireproofyourmoney.com.