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Now that we've told
ourselves the general truth about debt, it's time to make it
personal...and figure out exactly where we are at
personally!� This isn't a hard step...but it takes
courage.� It means that we will be gut-level honest
with ourselves about exactly where we are at
financially.� It means that we will have to endure some
possibly painful moments of truth.� It is similar to a visit
to the doctor...sometimes filled with fear, we go to the
appointment and find the truth.� However, the good news
is that our truth encounter (and the accompanying pain) will
help us get back to financial health...and we won't have to
endure this pain again! Where
Do We Go Now?
Let's continue our journey of
truth:� to move into financial "wholeness", you
must continue to get very specific about all of your money situation.��
You must know exactly where your money is going every month... and we
started this last week, with our debt/interest table.�
Last week's table concentrated on figuring out how much
of your money each month is going towards interest
payments.� This should have given you the real cost of
your debt, in money terms and intangible terms, such as
stress, etc. Now,
you must continue this process by figuring out exactly where
all of your money is right now.�� In other words,
you must figure out the exact
position of where you stand in relation to debt, savings,
assets, investments, etc.��� It is actually a very
simple process, but it is eye-opening...and will change your
whole outlook on money!��� Your
Financial Health Sheet�
You accomplish this process by filling out a
simple table like the one
provided below, which we call your "Financial Health
Sheet."� This is equivalent to what businesses
have to do on a regular basis (a balance sheet)...except we
are modifying it to make it much simpler...and to apply for
your own personal financial situation.� � Looking at
this will give you a snapshot today of where you are...what
your financial vital signs are.��
As you begin to fill this out, take time to accurately
record each (and every) of your assets/debts/etc.� This
process in and of itself is an important step in getting you
in the habit of knowing exactly where your money is...and
where it is going.��(Note that we have filled in
some examples just to help you understand better.)� Also,
note that the items in this sheet are what we call "hard
assets"...in other words, they have an easy to determine
value...and are easily convertible to cash.� (You
wouldn't include a Beanie Baby collection in this list, for
example, unless you are sure that you could sell it for the
amount you list!)��
So, fill it out now!� (If
you don't want to create your own, we have built one for you
in spreadsheet format - get
it here!)� Search through your bank accounts, 401K
statements, bills, etc to get your balances....it's all part
of the process!��
|
My
FINANCIAL HEALTH Sheet (EXAMPLE) |
|
ASSETS |
| ITEM |
APPROXIMATE
MARKET VALUE |
| Home� |
$110,000 |
| Car
1� |
$�
11,000 |
| Car
2� |
$���
7,000 |
| Checking
Account Balance |
$���
5,000 |
| Savings
Account Balance |
$���
1,000 |
| Mutual
Funds (from any source, including 401K, ROTH, etc) |
$���
2,300 |
| CDs,
Savings Bonds, Money Market Accounts, etc. |
$���
6,000 |
| Precious
Metals |
$���
1,000 |
| Other
(Internet Domain Names, Classic Cars, Antiques, etc.)
- Be conservative in your estimates! |
$�����
300 |
| TOTAL
ASSETS |
$143,600 |
|
DEBTS |
| ITEM |
OUTSTANDING
BALANCE |
| Home
Mortgage |
($83,000) |
| Auto
Loan 1 |
($
7,000) |
| Auto
Loan 2 |
($
3,000) |
| Credit
Card 1 - Visa AAdvantage |
($
7,000) |
| Credit
Card 2 - MasterCard |
($
4,000) |
| Credit
Card 3 - Foleys |
($
2,000) |
| Credit
Card 4 - Home Depot |
($���
500) |
| Credit
Card 5 - Exxon |
($���
100) |
| School
Loan |
($18,000) |
| Other
(Personal Loan, Promise to Give at Church, Charity,
etc.) |
($��
200) |
| � |
� |
| TOTAL
DEBTS |
($
124,800) |
|
TOTAL |
| MY
NET WORTH |
$18,800 |
�
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