Your Person Finance Worksheets – A Look at the Data you Need to Include
Your worksheets need to be well thought out and planned. You should have a section that lists the starting and ending values of any and all of the financial assets that you are tracking and you also need to have the goals listed for that particular portion. This is important because over the lifetime of the use of your worksheet you will want to review what is working well and what is not working at all.
You should further break down the portions of your specific financial portfolio so that the short-term and the long-term re tracked separately. That is because your financial options that are made to be on the long run generally will change often in value but if you look at them over the longer period of time you will notice that they steadily increase in worth.
On the other hand the ones that are not so permanent tend to run good or bad. That means that if they are performing poorly there is a very good chance that they will continue to perform poorly and will not recover from the slump. This is why a good and strong financial portfolio will be diverse in these areas and will range between low risk, moderate risk and higher risk options for the short-term.
Obviously the higher the risk category the better and bigger the payback you will receive as a benefit. The beauty of tracking these on the worksheet is that you can tell almost immediately what works and what does not and if you don’t like the way something is performing but you want to stay within that risk factor, you can choose something else and track it the same way until you find the right mix for your situation.
Now as you look over your worksheet you might notice that your choice in the higher risk mode is doing phenomenal. Perhaps that is due to some strange world phenomenon and it is only going to be short lived. What you can do is shift the money around and pump more funds into that portion of the equation and keep an eye on the worksheet. When that starts to turn around and not make as much money you can once again swap that out to something else.
By tracking things on your worksheet you have the total control to do what you need to run your assets.
Related Posts
September 22nd, 2009 at 5:51 pm
Hi Kevin,
Is there a “person finance worksheet” model on the market that is available at a reasonable cost and that accomplishes the analysis you’ve described in your article. Do you have any recommendations in this area.
On a different subject are bank foreclosures safer than auctions and how is the best way to become an educated investor in this area.
Thanks,
Sonny