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Making Sense of Your Finances - Part 2

By Loral Langemeier

Knowing Where You Are Currently

Now that you have a better understanding of the financial goals that you want to accomplish, the next step is to see where you currently stand in relationship to accomplishing them. The following exercises will give a complete view of your current situation regarding assets, liabilities and cash flow.

CASHFLOW

This cash flow exercise will give you a quick snapshot of your current monthly cash flow. As you complete this exercise, you will see how much money you have coming in versus the amount you have going out. Take a real close look at how much you are spending on LifeStyle Maintenance versus WealthCycle Building.

Monthly Income
Itemize one on each line
Monthly Wages; salary (gross before taxes), Dividends & Interest

Item

Amount

   
   
   
   

Total Monthly Income

 

Monthly Expenses

Itemize one on each line.
examples: mortgage, rent, transportation, food, taxes, child related expenses, entertainment, insurance, loans, credit cards, utilities, gifts, charitable donation, clothing, dry cleaning, etc.

   
   
   
   
   
   
   
   
   
   
   
   
   

Total Monthly Expenses

 

Net Monthly Cash Flow

Monthly Income

 

Less Monthly Expenses

 

Less Monthly Pay Yourself First Contribution (saving & investment contribution)

 

Your Monthly Cash flow

 

NET WORTH

This net worth exercise will give you a quick snapshot of how much your current assets are worth. As you start completing this exercise, you may be surprised at how much you are really worth - especially if your home investment has appreciated in value.

ASSETS

Property Assets

Itemize one on each line
residence, furnishings, vacation home, jewelry,cars, art

Item

Amount

   
   
   
   
   

Cash Assets
Itemize one on each line
checking, savings, CD's

   
   
   

Equity Assets
Itemize one on each line
Real Estate, Stocks, Variable Annuities, Business, Mutual Funds

   
   
   
   
   

Fixed assets
Itemize one on each line
bonds, fixed annuities

   
   

Total Assets

 

LIABILITIES

Itemize one on each line
Mortgages, loans, credit card debt

   
   
   

Total Liabilities

 

Total Assets

 

Less Total Liabilities

 

Your Net Worth

 

Part 3 - Knowing What You Need to Achieve Your Goals

Loral Langemeier draws from her personal experience when guiding others toward prosperity. Loral built her first business in college and soon after started establishing a multi-million-dollar portfolio of properties and stocks. A passionate advocate of helping women master money management, she offers straightforward principles and concepts for achieving financial stability and independence.