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Debt Management Center

Learn all there is to know about debt, including 'good' debt and 'bad debt', how to manage debt and how to avoid facing a debt crisis.

Money Management Center

Learn how to assess your financial health and net worth and all about setting and reaching your financial goals.

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Step 1 - Setting Goals
Step 2 - Collecting Facts and Figures
Step 3 - Assessment of Financial Health
Step 4 - Realistic Goals
Step 5 - Action Plan
Step 6 - Review and Assessment


Collecting Facts and Figures - Your Current Financial Position

If you are unable to face or to understand your current financial position, there are professionals who can help. Fowler and Fowler Credit and Debt Solutions, Inc. has helped hundreds of people like you regain their good credit status, pay down debt, and begin the financial road to recovery.

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Once you have an accurate and well laid out outline of financial goals, both short and long term, the next step in money management is to get a very accurate picture of your current financial health. This includes several elements, such as a net worth assessment and a cash flow assessment, but begins by data collecting. In order to assess current financial health, facts and figures are required.

Get your financial documents in order

If you are new to money management, the odds are good that you are new to record keeping. The first step of this process is to gather together any and all records having any association to the money that enters your life and leaves your life. These include:

1) bank account statements

2) bills

3) credit card or loan statements

4) insurance

5) life insurance

6) mortgage statements

7) income tax statements

8) property tax statements

9) medical and dental bills

10) automobile bills

11) grocery bills

12) investment statements

etc.

In the likely event that you don't have copies of all these statements, refer back to checkbooks and bank account statements to track down where your money goes. Estimates can be acceptable in this process, but are very often inaccurate. The reason for this is that we often find it difficult to account for where our money goes. Having the facts renders a more accurate and therefore more useful assessment of your true financial health.

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Once you have your documents in order, complete a net worth statement and a cash flow statement. These provide a clear and accurate picture of your present financial health and give you a clear idea of the money that comes in and goes out of your life.

Jump to Step 3 - Assessment of Financial Health


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