Financial Inventory



Taking inventory of your financial situation

The first step on the way to financial freedom is to take inventory of your current situation. This is important because you need to know where you are at to be able to make a plan of where you are going to go. Taking an inventory means getting a detailed overview.


It is not complicated and do not have to have fancy equipment or special programs. Start by doing it simple. You will need to write down everything you owe and everything you own.

1 Writing down all your assets
2 Writing down all your liabilities
3 Calculating your net worth
4 Writing down your income
5 Writing down expenses
6 Calculating your net income

If you would like an easy way to do this, use this form. It gives an easy overview over the above mentioned and is free to use.

Financial Inventory Worksheet

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Worth to mention here is also the importance of having a total overview over your personal information and all legal documents, account numbers and other information that is vital to your financial health. Let the people closest to you know where they can find this information if something where to happen to you. Make an overview over this on a separate document.

The document should include:

1 Your full name, date of birth, and Social Security number.

2 The names and contact information of your lawyer, accountant, broker, insurance agent, and other important people that you have had regular contact with (ex: government officials)

3 A list all account numbers (bank, brokerage), credit card numbers, list of other investments and any identifying numbers and contact information that is related to your finances.

4 The document should say where all key documents can be found. That are documents like insurance policies, trust documents, your will, landlord-tenant contract or real estate contract and any other legal form or contract that are important.

If you get this far you will already feel more on top of your own financial situation, and it is easier to go to the next step.

Action Steps

1 Taking financial inventory

2 Deciding what are your financial goals

3 Making a detailed financial plan of how to get there

4 Putting the financial plan into action and monitoring it

5 Become a member of the Financial IQ Club!

Read also:

How to acieve personal financial freedom

Ways of saving money

Practical budgeting tips




Here are some free tools:

Debt free calculator

When will you be a millionaire calculator

Money 101 Course