Here’s the 4 step process to filling out a FLOP – a
Financial Life On a Paper.
Download the spread sheet here:
https://docs.google.com/spreadsheets/d/1g5CLcVAiYSKvWr1f-5JA-8f0m44rrEQuuiH9EeV3WGo/edit?usp=sharing
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
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