Net Worth vs. Assets Under Management

In the field of accounting, the balance sheet is one of the most important analyses one can utilize to evaluate the financial status of an individual or organization. This report consists of a listing of assets, liabilities, and owners equity, the latter of which is the sum of our assets less our liabilities. Owner's equity is often referred to in financial circles as "Net Worth."

As Christ followers, it is important to remember a couple of key factors regarding our "Net Worth" in relation to our lives and finances. First, when it comes to our lives, our net worth is not based on what we find on a balance sheet but rather who we are in Christ. Secondly, when it comes to our finances, we must be reminded that we don't actually own anything and are simply stewards of what God has entrusted to us to manage for Him. Thus, financially speaking, our net worth is zero!

Consequently, a balance sheet for Christ followers should not report Net Worth--it should report Assets Under Management. I have found this subtle change helps me have the right perspective when it comes to maintaining a proper view of finances.

In this season of Thanksgiving, we are thankful for each of you. May God bless your families as you gather to acknowledge God's wondrous provisions!

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Steve Crawley, PhD

BMA Financial

Executive Director