Financial Clarity Worksheet Questions
Why it counts: Clarity and commitment. Authorities agree that before crunching the numbers, families need to scrutinize their financial wellness—and the best chance of success comes from having everyone on board. Your mindset (how you think and feel) about situations impacts how you act and react. Understanding your past and current situations better can help you navigate your financial situations and prepare a plan if disaster should strike.
What major fiscal challenges do you face?
State Your financial positives in terms of debt and revenue
How do you think you arrived at this point? What would you like to change?
How is the subject of money addressed in your family: emotionally or rationally?
Who makes the financial decisions? Why?
Is there collaboration? How much?
The 7 Baby Steps According to Dave Ramsey Here’s my 2 cents about the Dave Ramsey way of finance. The steps are simple, and easy to follow. But, they are rigid and may apply more to those folks who can’t restrain themselves with access to credit cards. If you have a history of bad behavior with credit, then the Baby Steps are a great way to build up your wealth. I highly recommend that when you’ve gotten through the first 4 steps, you consider where you are at and if you want to continue with the other steps or move on to bigger goals, like being able to retire early.
# 1: SAVE $1,000 TO START AN EMERGENCY FUND - Emergency funds are your base. They help you get through whatever life throws at you. $1000 is a good goal for peace of mind without overwhelm. # 2: PAY OFF DEBT USING THE DEBT SNOWBALL METHOD - You can see examples of the Debt Snowball and Debt Avalanche methods in other parts of this package. Getting rid of debt and staying out of debt is good for your stress levels and your money. # 3: SAVE 3 TO 6 MONTHS OF EXPENSES FOR EMERGENCIES - In this step, you take the initial emergency fund and build it up. This takes care of something more major like getting sick long term. # 4: INVEST 15% OF YOUR HOUSEHOLD INCOME INTO ROTH IRAS AND PRE-TAX RETIREMENT FUNDS - Here you’re saving 15% of your income for the specific purpose of retirement. Can’t do 15%, then do what you CAN. Check the fees too. # 5: SAVE FOR YOUR CHILDREN’S COLLEGE FUND - I think we’ll all be different on this one. Of course, if you want to do this. Go for it! But, don’t put off the rest of your own life in order to pay for the kids to go to school. Teach them these steps and help them save for their own education. # 6: PAY OFF YOUR HOME EARLY - Or don’t even buy a home in the first place. There are a lot of folks who are retiring out of the country for the cost benefits, and there are those who sell their homes when the kids move out. For most people, a mortgage is the biggest financial commitment they have. It can be incredibly freeing to pay that off. # 7: BUILD WEALTH AND GIVE - When you have no debt (or very little) it frees up money that you can bless others with. There are fantastic organizations who need donations or benefactors. Find what you are passionate about and donate what you can afford. It will do your soul good.
DEBT SNOWBALL
DEBT AVALANCHE
HOW IT WORKS: 1. List all debs in order of balance from lowest to highest. (see example) 2. Only focus on ONE debt at a time - lowest to highest. 3. Put all extra money over and above the minimum payment toward the debt, until it is paid off. 4. Pay minimum on everything else. 5. Move up your list every time a debt is paid off.
HOW IT WORKS: 1. List all debs in order of interest rate from highest to lowest. (see example) 2. Only focus on ONE debt at a time - highest interest rate to lowest. . 3. Put all extra money over and above the minimum payment toward the debt, until it is paid off. 4. Pay minimum on everything else. 5. Move up your list every time a debt is paid off.
PRO: This one gives you quick wins and fast traction for removing debt. CON: You may end up paying higher interest rates until every debt is paid off if your biggest balances are at a higher rate.
PRO: You’ll save some money from interest. The amount depends on your balance, interest rates and how quickly you pay off each balance. CON: It can seem to take much longer and you’ll rist feeling impatience and frustration.
Expense Tracking Categories Income ● W2 Income ● Spousal support ● Child support ● Social security benefits ● Side hustle income ● Investment income ● Bonuses ● Reimbursed job expenses ● Tips ● Gifts Housing ● Mortgage ● Rent ● Home insurance ● Property tax ● HOA ● Home Maintenance ● Home Improvement Home Security
Healthcare ● Copays ● Doctor’s office visits ● Specialty care ● Mental health visits ● Dental care ● Vision care ● Prescriptions ● Over the counter medications ● Vitamins/ supplements Transportation ● Auto loan ● Registration ● Gas ● Road/Bridge toll ● Auto maintenance ● Oil changes ● Tires ● Larger service (brakes, fluids, etc.) ● Auto repair (estimate based on make/model/year of car) ● Public transportation ● Parking ● Roadside assistance (onstar) ● Other forms of transportation and associated maintenance (bike, motorcycle, recreation vehicles)
Memberships ● Yard care ● House cleaning service ● Meal delivery services ● Gym ● Magazines ● Professional society dues ● Music (spotify/pandora etc.) ● TV streaming services (HULU, Netflix, etc.) ● Amazon Prime ● Costco ● Software subscriptions ● Identity theft PetsFood ● Veterinary care ● Medications ● Bedding ● Toys ● Daycare ● Pet sitter/dog walking Consumer Debts ● interest payments ● Additional payments beyond minimum due
Expense Tracking Categories Food ● Groceries ● Restaurants ● Fast food ● Work meals (cafeteria/eating out because you don’t have a lunch or choose to not eat it) ● Meal service ● Children’s hot school lunches ● Coffee shops ● Alcohol Insurance/Medical ● Dental ● Vision ● Health Savings Account (HSA) ● Flexible Spending Account (FSA) for health or childcare ● Home ● Private mortgage insurance ● Personal property (valuables) ● Renters ● Pet ● Auto ● Life ● Disability ● Long-term care
Utilities ● Electric ● Gas ● Phone ● Cable ● Internet ● Water ● Sewer ● Trash ● Recycling ● Yard waste Taxes ● Federal income ● State ● Property ● Business ● Accountant fees ● Filing fees Children ● Childcare ● School tuition ● After school activities ● Sports (Gear and clothing, Sign up, Travel, Summer camps) ● Toys ● Allowance ● Baby expenses ● Diapers/bottles/etc. ● School supplies ● Child support
Charitable Donations ● Charities ● Church ● Political
Misc ● Anything that doesn’t quite fit into any category ● Unusual, nonrecurring expenses
Savings ● Emergency fund ● Investing fund ● Home fund (down payment, improvements, large repairs) ● College savings ● Fun savings ● Gift savings Personal Care ● Haircuts ● Hair color ● Nail salon ● Massage/Spa ● Beauty products ● Acupuncture
BUDGET Write everything you pay for . After you’ve done this for a month, you’ll have a better idea of how to budget going forward. Savings & Investments (Emergency Fund, Savings, College Funds, Retirement, etc.)
Weekly
Monthly
Home (Mortgage/Rent, Insurance, Repairs, Taxes, Etc.)
Weekly
Monthly
Transportation (payment, insurance, fuel, repairs, maintenance, public transportation, tolls, parking, etc.)
Weekly
Monthly
Utilities + Cell Phone + Internet
Weekly
Monthly
Food (Groceries, Coffee/Alcohol, Restaurants, Fast food)
Weekly
Monthly
Pet Care (vet, insurance, food, grooming, boarding, etc.)
Weekly
Monthly
Personal Care (clothing, household products, toiletries, cosmetics, etc.)
Weekly
Monthly
Entertainment (hobbies, subscriptions, movies, travel, etc.)
Weekly
Monthly
Other Debts (credit cards, student loan, etc.)
Weekly
Monthly
Other Obligations (child support, child care, sports, education, gifts)
Weekly
Monthly
Health Care (Insurance, Co-Pay, Prescriptions, Gym membership, Yoga class, life insurance, etc.)
Weekly
Monthly
Notes
CATEGORY: ___________________________ Date
Where
+/-
Balance
Date
Where
+/-
Balance
Cash Envelope System = Budget cash per category like groceries, gas, household bills. Print these trackers on heavy stock paper and glue to your envelopes to keep track of your cash for each category.
CATEGORY: ___________________________ Date
Where
+/-
Balance
Date
Where
+/-
Balance
Bill
Budgeted
Actual
Difference
Date Paid
Monthly Goals
Target Income
Actual Income
Target Savings
Actual Savings
Charity
Other
Short Term Goals
Actions To Get There
Long Term Goals
Actions To Get There
Track The Money DATE
DESCRIPTION
CATEGORY
AMOUNT
Income
Budgeted
Total Income Total Expenses
Savings
Debts
Personal
Food
Transportation
Housing & Utilities
Monthly Total
Actual
Difference
Banking Information Bank Name
Account #
Routhing #
Phone
Website
Secruity Question
Address
Username
Pin #
Security Answer
Debit/Credit Card #
Term
Interest Accrued
Bank Name
Account #
Routhing #
Phone
Website
Security Question
Address
Username
Pin #
Security Answer
Debit/Credit Card #
Term
Interest Accrued
Bank Name
Account #
Routhing #
Phone
Website
Secruity Question
Address
Username
Pin #
Security Answer
Debit/Credit Card #
Term
Interest Accrued
Bank Name
Account #
Routhing #
Phone
Website
Secruity Question
Address
Username
Pin #
Security Answer
Debit/Credit Card #
Term
Interest Accrued
Debt Info + Snowball / Avalanche Payoff Priority #
Company
Credit Type
Account Owner
Address
Website
Phone
Account #
Username
Password
Credit Limit
Interest Rate
Term
Interest Accrued
Goals Payoff Date
Minimal Payment
Due Date
Starting Balance
BALANCE
PAYMENT AMNT
DATE
NOTE
CURRENT BAL
Daily Spending Tracker DATE
ACCOUNT
TRANSACTION
CATGRY
WITHDRAW
DEPOSIT
BAL
Savings Jar : Color Each Line of the Jar as you Achieve that Savings Amount.
10,000 9000 8000 7000 6000 5000 4000 3000 2000 1000 500
BILL
INCOME
DUE
AMT
AMT
PAID
DATE
SAVINGS
GOAL
ACTUAL
Bill Tracker BILL
DUE
AMOU NT
PAID
J
F
M
A
M
J
J
A
S
O
N
D
SPENDING LOG
TYPE DATE DESCRIPTION AMOUNT BALANCE ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
DEBT LOG DEBT
AMOUNT
MIN PAYMENT
% RATE
DATE START BALANCE PMNT MADE END BALANCE ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Income WK 1 WK 2 WK 3 WK 4 TOTAL ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Household ___________________________________________________________________ Bills ___________________________________________________________________ Rent ___________________________________________________________________ /Mortg ___________________________________________________________________ Water ___________________________________________________________________ Trash ___________________________________________________________________ Gas ___________________________________________________________________ Electric Cable I___________________________________________________________________ nternet Phones ___________________________________________________________________ I___________________________________________________________________ nsurance Groceries ___________________________________________________________________ Gas/trans ___________________________________________________________________ Loans ___________________________________________________________________ Credit Card ___________________________________________________________________ Auto Ins. ___________________________________________________________________ Health Ins. ___________________________________________________________________ Medical ___________________________________________________________________ Maintenance ___________________________________________________________________ -home ___________________________________________________________________ -car ___________________________________________________________________ School ___________________________________________________________________ Fun ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
ONLINE ORDER TRACKER ORDER DELIVERY ITEM WEBSITE COST TRACK # DATE DATE ___________________________________________________________________
___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________
Bills J F M A M J J A S O N D ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________