Part 1 of Ringing in the New Year with a Fresh Financial Plan was about deciding what you wanted, in what order and what it would cost.

Part 2 focuses on using your past to reset the path for your future. It won’t take long!

Gather whatever information you have:

• Bank statements
• Pay stub
• Credit card bills (with the detail)
• Loan or mortgage information

Now take a few moments to synthesize it into 1 page by listing:

1. Assets – Market value (what someone would be willing to pay for it)
2. Debts -Total amounts owed
3. Calculate Net Worth = Assets – Debts
4. Income – Note your gross (before taxes & deductions) monthly salary and the net = after taxes & deductions)
5. Expenses – Monthly (use your statements & bills to confirm the amounts)
6. Expenses – Annual (such as car insurance, home insurance, property taxes)
7. Savings – Monthly or annual amounts
8. Difference Between Income & Expenses – Calculate it

Tip: Mark each expense as a need or discretionary and note the minimum you could get away with. i.e. Food expense may typically be $400 per month however, you could live on $300 if you had to.

This will show you how you’ve been spending your money and what your net worth is. Very valuable information that will be used in the next step…Making a Plan.