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The following exercise will help you identify what information you have about your financial assets and what information you may want to collect. Each question you are able to answer will help move you toward the most empowered feeling you may ever have– being in control of your financial life!
Set aside a piece of paper for every asset you own. Ten assets = ten pieces of paper. (You can also save paper by creating your sheets on a computer.)
For each asset, fill in the following information:
- What do I/we have? _________________
- Who owns it? (Is it in my name, my partner’s name, joint, tenants-in-common?) _____________
- Did I/we borrow to get it? _________________
- How much did I/we borrow? _________________
- When did I/we borrow? _________________
- For how long? _________________
- What is the interest rate? _________________
- How much (if anything) do I/we owe now?_________________
- Who manages it? _________________
- What are all the costs of owning this asset? _________________
- Who gets it after me? _________________
- Do I understand it? (how it works/performs) _________________
- Can I easily use it or change it? _________________
- What is its value? _________________
- WHAT IS IT FOR? _________________
Here’s an example of what your answers might look like:
What do I/we have? Our house
Who owns it? Joint, I think
Did I/we borrow to get it? Yes
How much did I/we borrow? $300,000
When did I/we borrow? April 2005
For how long? 30 years
What is the interest rate? 6%
How much (if anything) do I/we owe now? $280,000
Who manages it? I do
What are all the costs? Not sure; real estate taxes are $4,500
Who gets it after me? My kids, I hope
Do I understand it? Not sure
Can I easily use it or change it? Would be hard to sell right now, but I can get a home equity line if I needed to
What is its value? $320,000 (?)
WHAT IS IT FOR? What does this mean?
You may have a hard time coming up with some of the answers. Knowing the terms of your loans or the titling on your assets might require some digging or rummaging through file drawers. You may even be so discouraged that you think, “I hate this stuff. I don’t have time. This is why I don’t like finances.”
Try replacing any negative thoughts with, “This stuff is my life. I love my life and what I can do with it. I will find the time. I am worth it, so I’ll try!” The time you spend now in getting to know your resources, how they work, what they cost, and what they can be used for, is an important first step to getting your financial house in order.
Ready for your next step? Consider watching some of Eleanor Blayney’s educational videos on various topics of personal finance. Or check out our Financial Resources for Women page to see a topical list of our favorite books, websites and videos.
