Return to site

Wealth: Let's Get Organized!

· FinLitMonth
broken image

We use this book to delve deep into the money mindset. Wealth is a product of our ability to think in wealth terms and discipline ourselves. I like to use this book since a requirement is financial organization. The finish rich file folder system says "Find your stuff". The book uses a hanging folder system while I prefer a 5 inch 3 ring binder and dividers for each year. I am currently working on the 2021 organization system.

  • Tax Returns - insert last years' tax return in this section of the binder
  • Retirement Accounts - monthly IRA, company pension and ROTH IRA statements go here
  • Social Security - The benefits statement can be downloaded at www.ssa.gov
  • Investment Accounts - all non-retirement account activity go in this section
  • Savings and Checking Accounts - This is the divider for the monthly bank statements
  • Household Accounts - this is the divider for monthly utility accounts AND "House Title", "Home Improvements" and "Mortgage Statements"
  • Credit Card DEBT - David Bach wrote "Make sure you capitalize the word "DEBT" so it stands out and bothers you every time you see it.
  • Other Liabilities - these are for debts like personal loans, student loans, car payments, etc.
  • Insurance - all policies including health, life, car, homeowner's or renter's, disability, long-term care go in this section
  • Family Will or Trust - most recent will or trust goes in this section
  • Children's Accounts - all statements pertaining to college or investment accounts for the children
  • Finish Rich Inventory Planner - download @ https://davidbach.com/3bullet-resources/
  • Where does the money go? - budget found with the Finish Rich Inventory Planner

In order to build a wealthy mindset, there must be a baseline. The objective is to continuously add components like insurance and investments over time. Wealth building is a marathon not a sprint. The marathon begins with financial organization and completion of tax returns. We look forward to working with those who are READY to build legacy wealth.