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Balance It Out

If you ever want to transition from the business-world to the After-Business-Life™, it’s important to create the right balance in your life and in your books. Your balance sheet in business is:

Business Balance Sheet = Assets – Liabilities = Owner’s Equity

When you look at your Personal Net Worth, it’s very similar:

Personal Net Worth = Assets – Liabilities = Personal Balance Sheet


Even though they look the same, the numbers come from different sources. Therefore:

Business Balance Sheet ≠ Personal Balance Sheet

On the financial side of the balance beam, you need to be able to move money from the business balance sheet to your personal balance sheet. Too many owners keep all their retirement assets stored in their business. Those in the corporate world have been taught to diversify and to save so that they are not dependent on the whims of their company for their pension funds. If they typically earn $150K per year, they will need to put away something like $4 million dollars to be able to retire sometime between the ages of 60 and 65. My son, who is 35 this year, does not count on either his company providing a pension, or our government providing social security 30 years from now. A business owner needs to have the same attitude and put a substantial amount of money away from salary into a diversified portfolio of investments. He or she should not count on getting that much money, all at once, when they sell the business. It rarely happens. When it does, it gets trumpeted throughout the media and we get fooled into thinking that’s the norm. It’s NOT. So, you don’t want all your worth on the business side on the left and have your balance beam look like this.unbalanced

Your personal net worth is more than just money, and more than just your business. If you are what you do, then you aren’t when you don’t. I often say you should retire “to something” rather than “from something.” Here’s an equation to consider:

Personal Net Worth = Assets – Liabilities + Friends + Achievements + Talents + Health + Helping Others + Harmony – Regrets – Learning Experiences (not failures).

Let me leave you with three quotes on balance from Brainy Quotes:

Life is like riding a bicycle. To keep your balance, you must keep moving. Albert Einstein

It’s all about quality of life and finding a happy balance between work and friends and family. Philip Green

I believe that being successful means having a balance of success stories across the many areas of your life. You can’t truly be considered successful in your business life if your home life is in shambles. Zig Ziglar