Part 1 of the Process

Here is a Financial Health Checkup. Go ahead and fill it out for yourself...

1. What do you currently spend on the following?

a) Consumables/Perishables (food, entertainment, fuel, etc.)
b) Depreciating assets (clothes, furniture, decorating, etc.)
c) Education/Business (Things that are expected to produce return)

2. List the assets you currently have

a) Cash on hand & in banks
b) Savings Accounts or Retirement Accounts
c) Stocks & Bonds
d) Real Estate Equity
e) Automobile Value
f) Other Personal Property
g) Other Assets

3. What is the total of all your assets?

4. List your liabilities

a) Accounts Payable
b) Notes payable to Banks and Others
c) Installment Account (auto) Monthly Payment
d) Installment Account (other, Monthly Payments)
e) Mortgage (current balance)
f) Unpaid Taxes
g) Other Liabilities

5. What is the total of your liabilities?

6. Subtract the Liabilities from your Assets to calculate Net Worth. What is this amount?

Doing this will give you a good idea of where you are now financially. This will provide a basic guage to measure your progress as we proceed. Obviously the idea is to increase our Net Worth.

Another Important factor is to look at our internal script (attitude) towards money. Proceed to the next exercise.