Make a Personal Finance Statement. This is an overview and snapshot of your personal financial situation and net worth. Simple list your assets and liabilities. This is more than just cash and debts. It includes retirement accounts, investments, and real estate. Below is an example from the Wealth and Wisdom blog.
This type of document can be helpful in financial planning and should be updated at least once a year.
Make a list of Day to Day Bills. Think about if you were hospitalized and all of the sudden someone else had to make sure the bills got paid on time. Luckily, autopay helps a lot on this front. List monthly and annual payments. This list can also be helpful in financial planning. Here is an example to get your list started.
Similarly related – make a list of your debts and how to make payments – including account user names and passwords.
Paying for a funeral. Funerals are expensive. The average cost of a funeral is around $10,000 and can be much more! Save up. Part of your life insurance plan can include funds that go towards the cost of the funeral.
Let’s talk Life Insurance. Sometimes part of a work benefit package includes life insurance. How do you know you have enough life insurance? A rough rule of thumb is 10 times your income minus your current liquid assets, such as what’s in your savings or emergency fund account.
There are other items that can be wrapped into life insurance policies, such as Long Term Care Insurance (LTCi). There are many types of life insurance and working with a financial advisor is a good way to navigate all the choices.
Real Estate – think about how you want your title to transfer upon your death.
Be Prepared Seattle 