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Getting Started Audit
Investing
Ep. 358 · · 47m 36s

Getting Started Audit

Complete financial audit of 2022: income evaluation, expense tracking, net worth calculation. Building your FI foundation from ground zero.

Hosted by Brad Barrett & Jonathan Mendonsa
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ChooseFI has partnered with CardRatings for our coverage of credit card products. ChooseFI and CardRatings may earn compensation from card issuers when a customer clicks on a link, when an application is approved, or when an account is opened. Opinions, reviews, analyses & recommendations are the author's alone, and have not been reviewed, endorsed or approved by any of these entities. American Express is a ChooseFI advertiser.

Most people never truly know what their life costs—which is why they can't design the life they actually want. Starting fresh in 2022, Brad and Jonathan make the case that a proper financial audit isn't just bookkeeping—it's the difference between drifting and steering. By documenting take-home pay, categorizing real expenses, and calculating net worth, listeners can move from reactive money stress to proactive wealth building.

Key Takeaways

  • Conduct a financial audit to establish a solid foundation for your financial independence
  • Recognize the difference between gross income and take-home pay, including tax implications
  • Identify and document monthly expenses to understand your life costs
  • Calculate net worth by subtracting liabilities from assets
  • Complete the financial audit this week to prepare for financial growth

Chapters

  • Introduction
  • Getting Started Audit
  • Understanding Income and Take-Home Pay
  • Identifying Monthly Expenses
  • Calculating Net Worth

How Close Are You to Financial Independence?

Free calculators, a personalized FI roadmap, and a community of 25K+ on the same journey.

Key Quotes

  • "Do you sit and cry or take action?"
  • "Focus on the future, not the past."
  • "Get your foundation right for financial success."
  • "Understand your life costs for financial planning."

Action Items

  • Document your financial position using a spreadsheet
  • Complete a financial audit this week to establish clarity about your financial standing

Terminology

  • Net Worth: The difference between total assets and total liabilities
  • Take-Home Pay: The income remaining after taxes and deductions

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