Minimizing Financial Clutter: 52 WEEKS TO FINANCIAL ORGANIZATION – Week #9: Your Un-Balance Sheet -- www.OnlineOrganizing.com

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52 WEEKS TO FINANCIAL ORGANIZATION – Week #9: Your Un-Balance Sheet

Now don't get scared. I'm not going to ask you to do the math and calculate your net worth. None of us want to see those ugly numbers right now.

I'm asking you to create what I call your "Un-Balance Sheet". It contains all of the elements of a regular balance sheet, but without the monetary values of your assets and liabilities. Instead of writing the monetary value of each asset and liability, you'll note the location of the paperwork related to that asset or liability.

"Why in the world would I want to do that?" you ask?

· When you actually do need to create a real balance sheet one day, you'll already have a list of your assets and liabilities.

· If you get hit by a bus, it will be easier for someone else to deal with the things you own and owe if the person knows what you have and where the documents are located.

· If your paperwork related to your assets and liabilities is, um, stored in a pretty disorganized fashion right now, you'll have the opportunity to store it in a more organized fashion after you create your Un-Balance Sheet.

Your Homework for This Week:

Create a spreadsheet (paper or electronic). In the first column, list everything you own (your assets).List each asset individually. For example, if you own more than one car, list each car on a separate line. Below are examples of the items you might have in the first column:

ASSETS

Checking Account(s)

Savings Accounts(s)

Home(s)

Vehicle(s)

Investments-CDs/Stocks/Bonds/Funds

401K/Retirement Plans

Life Insurance Policies

Now, repeat the process to list everything you owe (your liabilities):

LIABILITIES

Credit Card(s)

Accounts Payable (outstanding bills)

Mortgage(s) Payable

Home Equity Line(s)of Credit

Bank Loan(s) Payable

Next, label the remaining columns as follows:

2^nd column: Account Number

3^rd column: Location of Original Documents

Be sure to date your spreadsheet. Put a copy of the list in your safe deposit box or home safe.

posted on: 3/8/2009 11:30:00 AM by Katherine Trezise
category: Finances

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Minimizing Financial Clutter

by Katherine Trezise

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About Katherine:

Katherine Trezise is president of Absolutely Organized, based in Baltimore, MD. She is president-elect of the National Study Group on Chronic Disorganization. Katherine holds a masters degree in business administration, is a Certified Professional Organizer® and a Certified Professional Organizer in Chronic Disorganization®. Absolutely Organized specializes in helping people organize their homes, paperwork and financial records to make room in their lives for the things, people and activities that are most important to them.

Katherine's Website:

www.absolutely-organized.com