- A liability = anything you owe to someone else - Examples: Credit cards /Personal loans/ Student loans /Car loans /Mortgages /Buy-now-pay-later balances Money owed to friends/family /Business debt List everything - no exceptions - This is not about judgment, it’s about accuracy - Partial awareness = distorted decisions - Include: Current balance/ Interest rate /Minimum monthly payment /Due date - You cannot optimize what you refuse to fully see. You also cannot manifest from a state of fear. Refusing to look at certain parts of our financial life is usually do to fear/overwhelm - which is a contracted state. And we cannot manifest from that state.

What are all of my assets? An asset is anything you own that has real, measurable value today. What counts as an Asset 1. Cash & Cash Equivalents * Checking accounts * Savings accounts * Money market funds * Cash on hand this is your liquidity layer (immediate access) 2. Investments * Stocks, ETFs, mutual funds * Retirement accounts (401k, IRA) * Bonds, treasuries * Crypto * Use current market value, not purchase price Ask: “What could you sell it for today?” 3. Property / Real Estate * Primary home * Rental properties * Land * Use realistic current market value * If unsure → estimate conservatively 4. Business Ownership * Ownership in a company * Cash in the business * Retained earnings * If valuation is unclear: * Use last known valuation OR * Conservative estimate based on profit 5. Other Valuable Assets (optional) * Vehicles (use resale value, not what you paid) * Jewelry, art, collectibles (only if resale market exists)

How we spend our money is actually a record of our priorities! There are 2 things here: our behavior and money. It’s much harder to track behavior (although you can), it’s much easier to track and calculate how much and where money was directed towards. So for today, I want us to think about what our spending says about our priorities. Our spending patterns show us our true priorities. Misalignment isn’t the problem - it’s only when we don’t see it. What are your top 3 priorities? Where does the highest percentage of your money go to?

Like any old pattern, there’s usually a cue that leads to the behavior. We have an idea of what categories we overspend on, what about what time of day or emotional state? Late night, in bed, when willpower is the lowest? Midday, when we we feel physically sluggish and want to reward ourselves that we’ve done some work? When we’re bored at the airport or waiting for a friend? When we’ve got some anxiety and need a distraction? If we can notice the pattern, we can stop the pattern (that is, if you want to). Let’s hear about WHEN you’re spending unconsciously.

A few categories usually dominate 60–80% of total outflow. Identifying your top 3 categories gives you the highest leverage for change. 1. Look at the last 30 days of total spending 2. Look at your categories (housing, food, lifestyle, debt, etc.) 3. Add totals for each category 4. Rank from highest to lowest 5. Identify your top 3 - Your largest categories reflect your current lifestyle - not just your habits - Big categories = where small percentage changes create massive impact - You don’t need to optimize everything - just the biggest flows