This was an eyeopening activity for me. It’s not about self esteem. It’s about how much money you are worth. This in no way is a reflection of who you are as a person. However, it might open you up to see things that need to change or to see what you are doing correctly.
Essentially you take all your debts and add them up. Then you add up all your savings (401k, roth, savings account, equity in the house, etc) separately from the debts. The next step is for you to take your debts away from your savings. That is what you are worth. Do you have a positive or negative net worth?
If it’s positive…great. Keep it up.
If it’s a negative net worth then just keep working on paying off those debts. It’s worth it to get out from under debt and keep a positive net worth! Debt traps you into a repeating cycle. You can not as easily leave a job if you are in debt. Let’s work on getting out of debt and having a positive net worth so that our opportunities are limitless.