Thursday, June 1, 2006

Take A Financial Physical

Ron Blue in his book, Storm Shelter suggests that we take a financial physical.

  • 1. Take a financial physical. The begining point of responsible, proactive money management is to determine the actual state of your finances. Most people are simply not realistic about where they are financially-and yet, if a person's physical health were at stake, (s)he would certainly be entirely candid with a physician. Just as a doctor needs the proper facts to make a correct diagnosis, a financial physical must also be completely accurate and honest.

  • 2. Establish a finish line. Decide where you want to go, and then develop sound financial goals. Whether you want to provide for a college education, debt reduction, retirement,...you must establish the objectives, discuss them openly with your spouse, write them down, and keep them in prayr.

  • 3. Plan how to get from here to there. An effective plan for getting from point one to point two is actually a five-step process:
    a. Learn to live within your income.
    b. Get out of debt
    c. Increase your giving.
    d. Become your own bank (increase your liquidity).
    e. Invest to preserve wealth.



  • Here are the critical questions, that Ron Blue says you must ask yourself, when conducting your financial physical:
  • What do I owe?
  • What do I own?
  • How much am I spending?
  • How strong are my safety nets?
  • 3 comments:

    1. This comment has been removed by a blog administrator.

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    2. again boca - you can pay to advertise, advertisers will only be accepted if they do not put readers further in debt.

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    3. I will have to remember that. My physical isn't very good.

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