Step 1 - list all your debt! * Credit cards * Personal loans * Student loans * Mortgages * Car loans * Lines of credit * For each one, write: * Current balance * Minimum payment * Interest rate (APR) Step 2 - do the math: - Annual interest cost =Balance × Interest rate - $10,000 at 20% → $2,000/year - * That’s ~$167/month just in interest (before touching principal) Step 3 - Categorize: high vs low interest High-interest debt (typically 10- 30%+) - Credit cards - Many personal loans - Some private student loans→ This is financially corrosive→ It compounds against you Moderate-interest (5- 10%) - Auto loans - Some private loans→ Neutral to slightly negative depending on context Low-interest (0–5%) - Mortgages (historically) - Federal student loans - depending when you went to school

- 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)

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.

The assignment is simple.. but confronting - Add up every dollar that left your life in the last 30 days - This includes: Bills/ Subscriptions/ Cash spending Venmo/Zelle/PayPal /Credit card payments - Investments (yes, even this counts as outflow for now) Do not categorize right now. Do not label as good or not. This will distract you because this could be a very intense exercise. Today is just one number: TOTAL OUT You don’t have to share the exact number. Most people underestimate how much goes out by 30-50%. You can share your feelings and reactions when you reach this final number.