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Step 1: How Much Monthly Income Do I Have? Step 2: How Much Money Do I Need? Step 3: How Can I Find Out What I Have?
Working with Financial and Legal Advisors |
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taking a financial
inventory
Now that you’ve collected all the papers you can find related to finances, how do you use them to find out how much money you have? Are you on solid ground financially, or are there potential problems you need to address? These are particularly important questions to answer because your loved one’s financial decisions may have been compromised by his or her suffering, sense of hopelessness, and/or underlying psychiatric illness. These illnesses can lead individuals to exhibit unpredictable, destructive behavior before their death, such as accumulating debt, spending money uncontrollably, and making bad, impulsive decisions. This behavior can create serious financial problems that are unknown to survivors until their loved one’s death. If you find yourself in this situation, it’s normal to feel angry, and even betrayed. This worksheet will help you organize the information you’ve collected and develop a snapshot of your total financial situation. To complete this worksheet: • Write down the “fair market value” of everything you own, including your home, car, savings, and investments, then add these up. Fair market value is the amount you could get if you sold these possessions and is not the same as an insurance value. Remember also, sentimental value has no dollar value. These are your total assets. • Write down the full amounts (not just the monthly payments) of what you owe on your home, car, and other loans, and add them up. These are your total liabilities. • Subtract your liabilities from
your assets to learn your net worth. The higher your net worth,
the more comfortable your financial position.
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Step 4: How Much Money Do I Have Overall?
