Manage Your Financial Life

Establishing Roots

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Buying a home or condo and getting a mortgage are major milestones in your financial life that require careful consideration and a comprehensive view of your financial situation.  Explore the blog articles below for helpful advice during this time of transition.

Life Events That Could Bankrupt You. Are You Prepared?

Family Office Approach

Cameron Huddleston published a piece entitled “7 Emergencies That Could Bankrupt You — And How to Plan” on www.gobankingrates.com. I’m quoted. Most Americans are financially unprepared for an emergency. Whatever the type, emergencies can have a profound impact on your finances. There are steps you can take to prepare for the unexpected—whatever that may be. Check out the full post below.

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How to Underwrite Yourself

Analyze Finances

Underwriting is what banks or insurance companies do when they evaluate risks associated with lending money or providing an insurance policy. To underwrite yourself, you need to take a close and honest look at your finances, ask yourself some questions, consider uncertainties and exposures, and evaluate your risk profile on many fronts. Analyze Your Sources of Income The first consideration is your income. Ask yourself these questions: Is your salary steady or variable? Do you rely on commissions or bonuses? Do you work in a cyclical industry? If your compensation is variable, you should not carry a lot of debt. Likewise, you should make sure to have an ample cash reserve. Evaluate Your Debt When you are thinking of buying a big item, consider if you can actually afford the item, not just whether or not you can afford the payment. Commit to paying off your credit card balances every…

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Personal Financial Statements

Analyze Finances

Evaluate your personal financial statements to gauge your financial health. When evaluating the financial health of a company, bankers and investors rely on three types of financial statements: An income statement, which incorporates income and expenses for a period of time A balance sheet, which shows net worth at a point in time A cash flow statement, which considers not only your household income, but also changes in savings and debt I’ll show you how to create each of them below. Income Statement:  Income – Expenses = Net Income How to create an income statement Add up your salary or other income Start with your after-tax take-home pay. Add any other sources of income from consulting or part-time work and rental or investment income (all on an after-tax basis). Add your partner’s after-tax take-home pay as well as any other sources of income. Subtract your expenses or obligations The main…

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