Monday, December 15, 2014

Finacial Review

I've had some time on my hand and because it's the end of the year I think the best way to spend any extra time is on review. First and foremost in this review is a family financial review. I'm done looking at how much money I think I deserve or want. I'm looking at how much money I truly need to provide for the family and have enough left over to invest. It surprises me that I don't need to make as much money as I did to do this. I'm ambitious to make sure my family is fully provided for. I'm thankful that right now I get to do that on my terms.

The first part of the review is to look at security. Things that make me and my family feel safe.

  1. Cash - Did you know the average American family doesn't have $2000 for an emergency. That's crazy to me. We have enough cash to live close to 6 months. That's not living at our current level but in crisis you can't expect that.
  2. Home - We are lucky we bought low and in a real pinch we could sell today with large upside.
  3. Pension- Mary is a teacher.
  4. Life Insurance - I have two. Thanks Mary
  5. No Short Term High Interest debt - No Credit Card Debt, No Auto Debt
  6. Bonds - I have none and the next security investment I make will be in Bonds.

This is a good start to review what we have and what we want. Next up will be looking at what we are doing to live fulfilling lives beyond our working days. That may be a long time away of if we are really good may be something we can choose. We have the investments and have had them for 20 years. I'll be the first to admit that I never look at them. By next Monday I will have had a full review of how they are doing.

I share this with you not to say look at how good we are doing. I always think there is room to give Mary and I more certainty. The point is to show you how to do it. If you are in the average American household the first thing is get out of any credit card debt and as soon as you pay those off, use that the same money and start putting it into savings or some other investment you can access easily. That's how we did it. We paid off our cars and then took those would be payments and split them in savings and long term investments.

Special Note on Shoe Reviews. If you like the shoe reviews I've done and want to see more go to www.shoeranger.com There you'll get a weekly shoe review from me. Hopefully all the other content we add will be of use as well. The real big content that we've been working on is still 30 days away but I'm happy to report that it's special.

It's a good life...

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