Addie Prewitt Live: The Where Y'at Net Worth Calculator
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Episode 13 - The Where Y’at Net Worth Calculator
August 3, 2022 @ 12:30pm CST
Hi, I'm Addie Prewitt, an estate planning and tax lawyer. I collaborate with forward thinking clients on ways to preserve their property and to pass on their values and prosperity to the next generation.
I live in New Orleans with my husband and two boys. And today I'm going to be talking about a spreadsheet that I put together. And as you can see, I'm very excited about this spreadsheet, which should tell you that I'm a huge nerd, but also I do think it's helpful.
So I thought it would be interesting for us to go ahead and walk through that together. So before we get into that, though, I kind of wanted to give you a little background on this and how it came about, you know, sometime around the beginning of the year, my husband and I were sitting down and kind of trying to get a handle on where all our stuff was.
And, and when I say stuff, we have three businesses between us. We own rental property and commercial property, lots of bank accounts associated with the businesses for each of us. So, you know, sometimes it's kinda hard to get a handle on where everything is, even though we're both involved in each other's business in the sense that we know what's going on, but if something really happened where would you go to find all the stuff?
So I said, “I'm gonna put something together like that. We really need to do this. I've been saying it for a while. Let's go ahead and do it.” So, like all good projects start I get on Google and search for “inventory calculator” or something like that. And I didn't really find what I was looking for. But what popped up was a lot about what's your enough number? So I started going down that, looking at a couple of spreadsheets to see if that's what I was looking for. And it kept coming up, like, your enough number, your enough number. And I was like, “what is this enough number?” And essentially it's the amount of money you would need to never earn another penny in your entire life.
And I was like, oh, that's sort of an interesting concept to think about. What is the goal? Aren’t most of us, I know myself included, always kind of thinking, “well, we just need to earn more so we can get this so we can remodel the bathroom” Or we think about buying this new car and updating the pool and do all this stuff. I call this the Cult of More: the more stuff you want, the harder you work, the more you do, the more stuff you want, it's this vicious cycle in my head, I call it the cult of more. Thinking about the enough number focuses you on what's really important.
I was reading a book recently that said “money is always priorities.” Ithink that's another way of saying: money is values. How you spend your money tells you what your values are a lot of the time. So thinking about this enough number really got me thinking about that. And then I found this article by a writer named Ryan Stoller, but it was just like a thought experiment. It wasn't like math, like here's a spreadsheet to find your enough number. But instead it said - say this billionaire philanthropist comes to you and four other people and says, “I'm going to give you all the money you need for the rest of your life. And you'll never be able to earn another penny.” You'd be like, “sweet! Give me a hundred million!” But there's a catch. There's always a catch. Right? And so the catch is, you'll never be able to earn another penny in your life, but only the person who bids the lowest amount will get the money. I think that's a good way of thinking about it: How much do you need?
Maybe your goal is to be extravagant and be an Elon Musk type figure, but that's not mine.
I want to be able to comfortably live with my family and for us to go on vacations we'd like to, and stuff like that. But no, I don't think it's super out of the realm of possibilities. And so thinking about it that way really got me focused on the first step. To even get there is to know what you have.
And that's how the Where Y’at Net Worth Calculator came about: What do you have? Where are you going?
So I'm going to go ahead and click onto it and we'll start…
Follow along with Addie Prewitt as she teaches you how to use the Where Y’at Net Worth Calculator - a Free Resource for her subscribers (thank you for being here!) and anyone who wants to find their net worth. It’s important to know where y’at, so you can know where you’re going.