Finances, Level 1- Organize
It will provide you the foundation to grow, it’s a must.
I’m not going to make this step sound like it’s amazing or something, but it does make a difference if you have not completed it. If you have already, good, move on.
On good place to start is by taking your monthly bank statements and advancing your monthly cash-flow. You can squeeze out a but more for your vacations and investments simply by being organized 5 minutes per month.
BEL0W, SHORT VIDEO ON MONTHLY CASH-FLOW TRACKING
Did you notice the WGA and FGA accounts?
Set up two Automatic Drafts; WGA and FGA
If you are wondering how to save for the future and vacations, bills and more. Clear your mind with multiple accounts. this method is simpler that serious budgeting and still gets results. possibly better results because once this method is in place, it sets up great habits and feels positive.
1) Determine your income.
2) Determine 10% of that value and 5% of that value.
3) Go to the bank and set up two separate accounts. Maybe even go to www.hsbc.com and set up two online accounts. This is nice because you earn five times more and it is easy to transfer balances, but since it is at a separate place, you understand the money here is for different purposes.
4) Label one account your 'WGA,' for Wealth Generating Account. The other, 'FGA,' for Fun Generating Account.
5) Set up automatic monthly drafts of the 10% into your WGA and 5% into the FGA.
6) Enjoy more peace of mind.
THIS IS NOT AN EXPENSE. You are paying yourself. The accounts are yours and the cash is readily available. If for some reason you need it for bills, grab it. My bet is though that you won't want to. In fact, once this catches on for about six months, you will want to put more in.
WHY ARE WE DOING THIS? It is a minimal effort to change bad habits of not saving, investing and strategizing; to doing it.
Being organized in detail covers things like; knowing all of your income and expenses. Your liquid cash accounts, growth account values, insurances (different types; their breakdown and deductibles). All of your concrete assets and liabilities. What is your financial net worth and predicted net spend-able retirement income. These things and more. It won’t be that hard to do, you will just have to dig up a few statements.
BELOW, FINANCES LEVEL 1, VIDEO #2 (DETAILED SPREADSHEET)
It’s basic and you may not even want to know them, but put them in order for quick reference and clarity. Once they are in order, it is very easy to update them annually and maybe choose a couple things you review more often. Then, we can put a plan in place and move on.
After you are organized (using our sheets or your own), you can get a free assessment (or report) of your strengths and vulnerabilities. Even if you know them (or feel you do), it never hurts to get another assessment. Even get one from multiple sources, it can’t hurt, just know what you are doing before you act on anything.
After you review this clear report of your finances, the next natural step is to get some professional advice. How to protect and accelerate faster than you currently know how. Would you believe the finance professionals can actually suggest two opposite directions for you to take. One non-conventional option is explained in the next step and we can give you report and analysis showing it’s potential.
For now, organize and gain clarity of everything that affects your financial life.
Below is an example of how you could start a spreadsheet if you do not use software to track your finances.
At End of Year... 2009 2010 2011 2012 etc!
Sample Of Record Keeping
Stats
Person 1 Age
Person 2 Age
Person 3 Age
Person 4 Age
INFLOW: Sources Of Income
Career (TFM)
Person 1
Person 2
MSI's (Multiple Sources of Income)
Biz 1,
Biz 2,
Biz 3
Rental Income Property 1
Rental Income Property 2
Interest Earnings
Dividend Earnings
Insurance Policy 1
Insurance Policy 2
Total Annual Income
Monthly income
OUTFLOW: Monthly
Avg. Checks Written, Business Account
Avg. Checks Written, Home Account
Automatic Expense Account Deductions (From Statement)
Avg. Business Card Bill
Avg. Credit Card (home)
Car Ins.
Phone/Internet
Health Insurance Prem.
Car 1(Paymernts)
Car 2
FPL
Term Life
Home Mortgage (PITI)
Total Average Monthly Operation Expenses
Avg Monthly Into Growth Accounts
WGA (Wealth Generation Account)
FGA (Fun Generation Account)
Wealth Bucket 1
Wealth Bucket 2
HSA
Roth IRA's
Qualified Plans (401K etc)
529 etc
Monthly Total Into Investments
Total of all Monthly Outflow
~ Monthly Cash Flow
Tax
AGI, Adjusted Gross Income
Taxes Paid/Refunded
Tax Percent Bracket
Annual Taxes Witheld
Values Balance Sheet
Concrete Assets
Home Value
Rental Value
Concrete Assets
Car 1 Value
Car 2 Value
Total
Liquid Accounts
Local Banks ( 2 month)
OnLine Account (12.5% Income) WGA
OnLine Account (5% Income) FGA
Brokerage 1
Total Cash Accounts
Growth Accounts Value
Mutual Fund-
Mutul Fund-
Mutual Fund- roth
HSA, Health Savings
529, Education
Wealth Bucket 1
Wealth Bucket 2
Wealth Bucket 3
Wealth Bucket 4
Time Share Value
Total Value of Growth Assets
Total, All Assets
Liabilities
Loan Debts
Home Mort
Inv. Mort 1
Other Loans
Car (total)
Total Debts
Financial Net Worth
SUMMARY
YEARLY INCOME=
MONTHLY INCOME=
MONTHLY OPERATION EXPENSES
MONTHLY TO GROWTH ACCOUNTS
MONTHLY OUTFLOW
MONTHLY CASH FLOW
AGI, ADJUSTED GROSS INCOME
HARD ASSET VALUES
All CASH LIQUID ACCOUNTS
All GROWTH ACCOUNTS
ASSETTS TOTAL
ALL DEBTS / LIABILITIES
NET WORTH
Annual Performance/Change
Income 1
Income 2
Bucket 1
Bucket 2
Qualified Plan 1
Qualified Plan 2
Other
AGI (Adjusted Grross Income)
RECORD KEEPING BELOW
Protection
Insurance Coverages
Life
1, Amount Total
2, Amount Total
Home Coverage
Dwelling Structure
Other Structure
Personal Property
Income
1, Disability
2, Disability
Sickness/Emergency
Health Insurance
Supplemental Insurances
Longterm care
Preventative Health Insurance
Certified Wellness Home
Other
Auto
Body liability
Property Damage
Uninsured motorist
Collision
Road Service
Rental Reimbursement
Business
1
2
Other
Liability Blanket
Will Updated
Trusts Set Up
All Deductibles
Home
All Perils
Hurricane
Auto
Personal Injury Protection
Comprehensive
Health Insurance
Total Deductible Liability
Other Stats
Mogtgage 1 details
Company
Years
Type
Interest rate
Payment, P&I
Remaining Balance
Taxes
Insurance
Escrow Payment
Tax
Current tax bracket
Life Insurances Details
Policy 1, Term?
Policy 2- EIUL
***Benefit/DBO
***Annual Contribution (June'ish)
***Total Contributed
***Floor/Cap
***Current Accumulation Value
***Current Surrender Charge
***Net Surrender Value
***Interest Credited Total
***Sum of Monthly Deductions
***Riders
Policy 3, EIUL
***Benefit?DBO
***Annual Contribution (June'ish)
***Total Contributed
***Floor/Cap
***Current Accumulation Value
***Current Surrender Charge
***Net Surrender Value
***Interest Credited Total
***Sum of Monthly Deductions
***Riders
Miscellaneaous
Finances
1, Planning/Organize
2, Missed Fortune
3, Business Systems
Family
1, Journal
2, Capture moments
3, Lifecycle
Body/Health/Fitness
1, Medical
2, Wellness Home
3, Fitness
Mind
1, Secret
2, Lead The Field
3, 6:00 Club
Society
1, Why
2, Plan
3, Inspire
Major year purchases?
Future Needs
Future Wants (Wish List)
