Can you think back to being in school, sitting at your desk, and staring straight ahead as the teacher walked around placing graded papers face-down on everyone’s desks?
Do you remember a little flush of anxiety as you wondered what your grade was? Did you dread it being worse than you expected? Or were you one of those kids who looked forward to getting your graded paper back because you knew you’d done well and that the teacher was merely confirming your excellent work?
Now try and think about how you'd feel today if the teacher were handing out Wealthgrades. In other words, if you were being graded on the state of your finances, would you have the same flush of anxiety, or would you feel confident knowing that you’ve always done everything right-you’d saved the maximum, avoided debt, and spent money according to a strategic plan? Or would you just prefer to not know at all? (Of course, that's probably not the case, or else you wouldn't be reading this.)
Chances are, you're like most people: you'd like to know how you’re doing financially, but you’re also a little apprehensive about facing the truth of your past financial choices.
Most people don't know their Wealthgrade, but what’s surprising is how few financial advisors know the Wealthgrades of their clients.
Before becoming a member of Money Organizer Pro (the professional version of the Money Organizer Plan), financial advisors were asked to estimate the Wealthgrades of their respective clients. On average they assessed less than 15 percent of their clients correctly.
The problem isn't with financial advisors so much as it is with the industry standards. Too often clients are measured only by their assets, which is an incomplete metric. A true measurement should include a person's relationship between their assets, liabilities and net income needs.
For example, Peter and Mary each have a net worth of $500,000. The industry standard of wealth assessment would give each of these people the same grade. However, there’s a very significant difference between the two: Peter earns and spends $500,000 a year while Mary earns and spends $50,000.
Of the two of them, who has a better chance of retiring tomorrow and maintaining the same lifestyle? If you said Mary, you're right: $500,000 is ten times her annual net income needs, whereas it's only one year of net income needs for Peter.
So, what’s your Wealthgrade and what does it mean? You can find out at FreeWealthgrade.com. Although the actual Wealthgrade algorithm is more complex than this, FreeWealthgrade.com will give you a pretty close assessment of how you’re doing.
But keep in mind, your current Wealthgrade is only an indication of where you are today. What’s most important is your future Wealthgrade.
In the Money Organizer Plan you can learn your future Wealthgrade if you were to continue doing what you’re doing now compared to your Wealthgrade potential if you followed the built in 5-step wealth building plan.
What many are surprised by is not how poorly their current path looks but by how much potential they have to reach higher net worth levels in the future. Then again, The purpose of the Money Organizer Plan is to help you make the most of your money so you can reach and maintain your Ideal Lifestyle.