Components of a Financial Assessment Part 1 listed the beginning of understanding your own financial situation. The first steps include determining your Assets, Liabilities and Net Worth. Next, list your income and expenses. You need to know how you will track or record your financial transactions. Then, begin building your budget-the key to controlling your money and financial future!
After understanding these ideas, here are a few ideas for your next steps!
Do you have a will?
Having an up to date will is a great gift to give your loved ones. You know you need one. Begin to think about your will and the directives that you would have for your assets. Take the steps to create an online will or talk to an attorney to begin the process.
Insurance Coverages
Review your Insurance Plan to make sure that large casualties won’t wipe you out financially. Auto, Home/Renters, Health, Disability, Long Term Care, Life and Identity Theft Protection would form the basic coverages. Reviewing your coverages will show you where you made need to modify your protection.
Where are you on the Dave Ramsey Baby steps?
Dave Ramsey has created a step by step plan to move you toward financial stability. The steps are: 1. Save $1,000 in a Beginning Emergency Fund; 2. Pay off all your debts except your House; 3. Build your Emergency Fund to 3-6 months of your expenses; 4. Save 15% of your income for your retirement; 5. Save for your childrens’ college fund; 6. Pay off your home early. 7. Build wealth and give. For more information see daveramsey.com.
As you make progress on these lists and ideas, you will be gaining control of your money and be on your way to financial peace.
For help with a financial assessment or creating a budget, contact Russ at https://russbellmoneycoach.com/contact/