Know Your Stuff

Today, let's get real.

Before we can make any changes, we have to be in the know. And be completely honest.  Let's take this week and document everything about our finances.  I use a spreadsheet (of course, I do).  If any of you want to see it as an example, comment below.

Know our income:

• Amount we earn
• Dates we earn it
• Bonuses
• Overtime
• 401(k) matching
• Other income (like rental properties, side businesses,

If you can get a year's worth of data in this category, it's best.  That way you have a strong average based on season, etc.  If not, at least six months.

Know our expenses:

• Start with debt:
  • Credit Cards
  • Lines of Credit
  • Vehicle Loans
  • House Loan
  • Taxes
  • School Loans
  • That amount you owe your relatives
  • Any other that I can't think of
• Next your household expenses:
  • Rent (if you don't own)
  • Electricity
  • Propane/Gas
  • Phone/Internet/Cable/Satellite/Data plans for mobile devices/Cellular
  • Water/Trash/Sewer
  • Housekeeping
  • Lawn Care
  • Pest Control
  • Vehicle Registration and Maintenance
• And now living expenses:
  • Groceries
  • Don't forget your pet's food and care
  • Fuel for your vehicles
  • Insurance (Health, Vehicle, Home, Renter's, Life)
  • Medical/Dental/Vision Insurance and expenses (do you have a deductible or just office co-pays?)
  • Pharmacy
• Include business expenses if you have your own business
  • Office Supplies
  • Contact Management Systems
  • Inventory
  • Other Supplies

It's best to have 3-6 months of this data.  Include total amount owed, minimum due each month, due dates, interest rates (this is important since we're going to pay the items with the highest interest off first) and if there are any penalties for paying something off early. [Suggestion:  As you are researching all of this information, consider choosing the paperless options to reduce the amount of paper used.] [Suggestion:  Consider starting another spreadsheet with all of your logins and passwords, websites, contact phone numbers and account numbers.  I named the file one of my pet's names (don't name it "passwords" or "account info") and I add numbers or characters to the titles of the columns.  E.g. Us3r Nam3 and P@ssw0rd.  I've had this for at least 10 years and haven't had any security issues.]

 

[Suggestion:  Read "The Law of Attraction" by Michael J. Losier.  It put into words what I have known my whole life and really explains in great detail how I feel.]

Do you think we need two weeks to gather all of this data?  Let me know.  It's a VERY important step.

Love & Prayers of Abundance! Laura

p.s.  If you know anyone who would be interested in earning money while blogging, send them here for more information or click here to see how you can get paid to do it, too!