|
Twelve Months of Financial Milestones Working with Financial and Legal Advisors Taking Control of Your Financial Future How Much Money Will
I Need to Achieve How Should I Manage
My Money to Reach
Adopt and Stick with a Financial Strategy |
 |
taking CONTROL
OF YOUR FINANCIAL FUTURE
First, determine your net worth and cash flow. Complete this worksheet and look at the results. Do your assets exceed liabilities? If so, you have positive net worth, and your money is working for you. But there may be more you can do with it, such as putting more into investments or setting aside extra funds for retirement. If your net worth is small, or even in the red, it’s time to tackle debt and build your cash reserves and investments. Now look at your monthly income and monthly expenses. If income is higher than expenses, you have a net positive cash flow that can be used, along with funds already accumulated, to accomplish your goals. If your expenses are higher than income, however, you will need to work at reducing your expenses and/or increasing your income to achieve a positive cash flow. Bringing expenses under control may be easier as you begin to heal emotionally. It’s important to take control as quickly as you can or you may find it difficult to recover financially and accomplish your goals. See this information on “Tackling
Debts” for suggestions on ways to get credit card and
other debt under control.
|
Determine Your Net Worth and Cash Flow
