First is to really think about your short and long term financial goals. In our file Financial Goals Worksheet we breakdown the elements to consider when developing you long term financial plan.
We created our Financial goals worksheet file as a memory jogger to help walk your through the process of creating the framework for your financial plan. As you go through each category set your goals without limiting yourself within your current budget. Our Financial goals worksheet has six exercise's:
Financial Goals worksheet
Savings Goals worksheet
Daily Expenditures worksheet
Asset worksheet
Income worksheet
Expenses worksheet
Here is a example of the Financial Goals worksheet
Our first two worksheets are designed to provide the framework of your goals of what you want to achieve and to create a vision. Saving goals worksheet focuses of setting up your short term and long term savings goals. Some short term savings goals can be setting up a Emergency fund, buying a home, a car or setting up a college fund for your children. Do you have a plan for that unexpected car or home repair? How about the unexpected dental or medical expense?
When you start thinking about your Long Term Saving goals that are really focusing on your retirement savings and the income it will produce and for how long. Do you know how much income you will need? Do you expect expenses to go up or down? Will your dollar still have the same buying power?
The balance of the Financial Goals worksheet really focuses on Cash Flow Management because without managing your cash flow no matter what goals you establish they may never be achievable.
Do you know where your money is going? This is where the rubber hits the road so we created the Daily Expense worksheet to highlight your spending habits:
Now lets start the Asset worksheet to help you visualize all the money you have into a simple worksheet that breaks down where your money is deposited. First look at your money in taxable accounts that's typically Checking, Savings, CD's, Stocks and Bonds. Next we have tax deferred accounts such as your 401K IRA and annuities. And lastly the tax advantaged accounts such as your Roth IRA, cash value life insurance, 529 college plans and Municipal bonds. Here is an example of our asset worksheet:
Now lets look at your sources of income. Are you an employee or self employed? Our Income worksheet walks you through determining your net income and the source. For example you are a w-2 employee with taxes and other deductions withheld from your check. How are you paid weekly, bi-weekly or monthly? Enter the data from your paystub and the worksheet will auto calculate your estimated net income. here is an example:
This is where the moment of no return happens as we examine your expenses. The question "Do you know where your money is going"? will rear it's ugly head. It's meant to create the question "Do I need every cable channel under the sun" or "Do we need eat out 4 times a week". Our goal with this worksheet is for you to examine where your are spending money and where you can save money. It's meant to create the process of finding more cash flow within your own household budget. Here is an example:
We feel the goal for analyzing your debt is to begin the process of becoming debt free but what debt should tackle first? Things to consider is the amount and the interest rate. To create a winning attitude tackle the smaller debts first and as each is paid off roll that total payment to the next debt. It will take time, patience and determination but you can't accumulate assets until you are debt free.
Lastly is the Financial Summary worksheet of your goals in numbers to visualize your financial future and what needs to be addressed to meet your goals.
One of the most important item's to address is your family prepared for the unexpected loss of income? What would happen if you could not work? Do you have the financial protection to insure your families dreams are not lost in the event of loss of income? We do not insure life's but we do insure your families dreams.