Financial Documents

The great thing about going back through my debt steps is I’m finding ways to improve or change what I’m doing.  Some things will help me spend less time on this money stuff while some will just make it easier to accomplish.  Let’s get it on!

Financial Sheets These will help show your financial picture.  Do you owe more money that your worth?  Have more or less equity than you thought?  Unless you have this broken down on paper and not in your head then don’t know for sure.

What We Owe – This is what I used to get my information organized to see who we owed money to and how much money we have.  I listed each name, amount, as of date and interest rates.  I used this sheet as my main page to fill into the next two sheets.

Debt Snowball – There are different ways that debt can be listed on this sheet, each person is different in what they want to do.  I decided to list all my debt smallest to largest; another way is by interest rate.  Thankfully I had just transferred most of my credit cards to 0% interest cards and so this was an easier decision for me.  For my wife this was the better way to do it because she could see the smaller debt being marked off and see it starting to work.  This can be a psychological more than anything else; you have to change your behavior and the way you think if you truly want to be out of debt.

Equity Sheet – Finally we get to see what were worth, well mine doesn’t include everything but at least I’ve got a picture of my financial situation.  Most of the information is pulled from the What We Owe sheet but still some has to be input and kept up to date.  I’ve seen a big change in mine from just the first few short months I’ve been attacking my debt.  This could have been used to list everything in the What We Owe sheet but for me it was easier to input the information as I came across it in a more random way.

Here are my financial sheets; there are three tabs at the bottom for each of the sheets we discussed.  Most of the information on the What We Owe sheet as I said earlier fills the other two, making the process easier when I update my numbers each month.

I’ll be honest that after I was finished filling my equity sheet that I was both excited and depressed.  It was unbelievable that after all those years of working and earning money I was worth so little.  The excitement came from knowing that I had nowhere to go but up, and in a few short months my equity sheets have gone positive several thousand dollars.

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