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Saturday, December 13, 2014

124. FLOP – a Financial Life On a Paper

Here’s the 4 step process to filling out a FLOP – a Financial Life On a Paper.




1. Fill out a Balance Sheet

A balance sheet captures the full picture of your financial health. Update it twice a year to see your progress.

It not only accounts for all the debt you have been paying off but all of your good financial decisions such as increasing your emergency fund, paying down debt, making wise investments which will affect your balance sheet in a positive way.

To get a clearer picture of your financial health you need to look at Assets (What you own), Liabilities (What you owe), and Net Worth (What you own minus what you owe).

It looks like this:

Assets – Liabilities = Net Worth

2. Choose a Pass Code

A passcode is a phrase that you can use with different variations. For example, what if you chose the following Pass Code:

Good2know!

This Pass Code has a capital letter “G”. It also has the number 2. And it has a symbol in the exclamation mark “!”. You can rotate the Pass Code by putting a combination of letters or numbers at the end of it.

For example:

Good2know!14

I chose 14 because the year is 2014.

Using a Pass Code allows you to remember passwords a lot easier too!

I would recommend changing your Pass Code every 30 days. I wouldn’t wait longer than 60 days if you forget.

Set a reminder on your phone or mark your calendar. Or even perhaps simply make it a habit to change your Pass Code on the 1st of the month.


3. Organize of all Login Information

After adding all your accounts and balances above in the first step with the Balance Sheet simply start filling in the account information, Login ID, Website, Phone, and Comments.

I’d put a pass code or password hint in the comments section.


4. Leave A financial Roadmap for my Spouse or Significant Other

In most families one person manages the finances – this person is often called “the Nerd” in the relationship. As opposed to the “Free Spirit” – the uninhibited one. But I digress….

What would happen to the spouse or significant other if “the Nerd” were to pass away?

Are you the money savvy person in the relationship? Does your spouse or significant other know about or can they access your bank accounts, investment accounts, safety deposit box, insurance policies, email accounts, social media accounts, etc.?

I would either burn the file onto a CD or copy the file onto a thumb drive. Then put it in a safe or safety deposit box. Update the FLOP every 6 months. If you want to track your progress with your debt fill it out every month or two.

Losing a loved one is a terribly difficult process. Having a plan in advance for your loved one will eliminate additional, unnecessary stress.

Note: If you can’t open the file download and install the free version of Microsoft Office: http://www.openoffice.org/download/

#FLOP #PassCode #FinancialLifeOnaPaper #Login #NetWorth, #Password

Are you ready to do your...




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Follow me on Twitter! @JWKEagle

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Also look for the blog's website online with the hashtag:
#‎eaglesoaringhigher

Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.  

Monday, December 8, 2014

123. Tutorial on a (Written) Monthly Cash Flow Plan



This Monthly Cash Flow Plan is going to be a bit more involved than the Quick-Start Budget. But totally worth your time! This is where we get really serious about our budget, money, saving, cutting expenses, and changing our family tree! 

For clarification in the tutorial example I'm assuming I'm making this budget for December 2014 and including Christmas gifts in my budget. 



Here's the direct link to the video: http://youtu.be/PHyEG3B-SIc

Print off the Monthly Cash Flow Plan here and follow the video tutorial: http://www.daveramsey.com/tools/budget-forms/

Dave Ramsey says:

“Budgeting means spending every dollar on paper, on purpose BEFORE the month begins.”

“Having a plan with money doesn’t just help you right now, it also gives you a vision and hope for the end goal.”

“Budgeting for the first time can be scary, but you MUST face your fear.”

“Doing a budget means learning an ancient and powerful word: NO!”

“While getting out of debt, you’ll need to scale back on gifts or outings with family. Have the courage to be real about why.”

Are these tutorials helping you? Please like the video or post a comment so I can get a feel for how many people still are needing help with a budget.

#TotalMoneyMakeover #TMMChapterFour #Budget #Budgeting #MonthlyCashFlowPlan #FinancialFreedom #DaveRamsey

Find the group on Facebook! Dave Ramsey - Financial Freedom

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Follow me on Twitter! @JWKEagle

Check out my pins on Pinterest! http://www.pinterest.com/jonathanwkey/ 

Also look for the blog's website online with the hashtag:
#‎eaglesoaringhigher


Looking for a particular topic? Please check out the new Table of Contents to see posts listed by topic.