Operation Organization

You are going to be surprised at what I suggest you do this week: put together your Net Worth Statement---or---Financial Statement.

This is the perfect time to do it. You are receiving all of your tax information right now. It's an easy way to remember everything you have. And, you've already cleaned out your files in January so it should be pretty easy to gather the information. It's a pretty simple process and shouldn't take more than an hour or two. Start gathering the following information and make a simple list:

What you have (assets):
cash/savings
investments
retirement accounts (IRA's---401K's---profit sharing)
life insurance cash value
auto(s) value (may have to check the "blue book" for the value.
recreational vehicles
home value (just get the market comps for your neighborhood)
personal possessions (think in terms of what you would get if you had a garage sale and sold all your stuff)

What you owe (liabilities):
Mortgage
2nd mortgage
School loans
Auto(s) loan
Personal loan
Credit Cards

What you have -minus- what you owe is your Networth.
There is something satisfying about seeing where you are financially. On the other hand, it could also be a "wake up call" to take action to get things under control.

Here's how your financial statement will look:

Your Name 

Financial Statement---March 2013

Assets:

Cash                                                          $$$$

Investments                                               $$$$ 

Life insurance cash value                          $$$$

401K or other retirement                           $$$$

Home                                                        $$$$

Vacation home (for those of you lucky enough to have one)

Autos:

2006 whatever                                          $$$$

2012 whatever

Personal Possessions                                 $$$$

                                      Total                  $$$$$

Liabilities

Home                                                     $$$$$$

2nd Mortgage

School Loans

Auto Loans

Credit Card debt

Personal Loan

                                      Total                $$$$$$

Net Worth                                            $$$$$$

(subtract the liabilities from the assets to arrive at your Net worth)   

If you have to subtract your assets from your liabilities---you better get a second job. Sorry.   

There you go---your assignment for this week. I don't need to know your financial details, but if you've never done a financial statement before, I'd like to know what you think about it.  

On the other hand, if your financial statement renders you more wealthy than you thought---you might want to invest in the 19 million home here in Nashville where the tv show Nashville was/is filmed. The mansion is not too far from me, so you could visit me regularly!