Here’s a condensed and rephrased version of the content you provided:
I’ve always loved the movie “The Goonies.” The scene where Mikey discovers One-Eye Willy’s treasure map is unforgettable. We all cherish the idea of treasure maps. I have my own version of one — a guide to our financial assets.
Our financial records consist of two main documents: the Net Worth Spreadsheet and the Financial Guidebook.
- The Net Worth Spreadsheet is an Excel sheet that breaks down our net worth, sticking purely to figures.
- The Financial Guidebook offers a deeper understanding of our financial framework. It’s a Word document detailing each account, its objective, contacts, and how they interlink. This guide starts with a visual representation, showcasing how our accounts connect.
Both resources offer a comprehensive view of our financial situation.
This guide ensures that in my absence, someone can manage our finances without making any assumptions. It decodes my financial decisions in a basic, user-friendly format.
Though I call it a Financial Guidebook, my friend Chelsea from Smart Money Mamas refers to a similar tool as an ICE Binder (In Case of Emergency Binder). If you haven’t crafted one yet, Chelsea provides some handy templates.
Contents of the Financial Guidebook:
- Introduction:
- A clear explanation of the guide with a legend to avoid confusion.
- A visualization of our financial connections is also included.
- Bank Details:
- Explanation of each bank account’s purpose.
- For instance, we maintain five bank accounts, each serving a distinct role, and the guidebook clarifies their functions.
- Investment Overview:
- Describes our two primary brokerage accounts.
- Outlines our investment strategies, including specifics about different account types and the reasoning behind them.
- Direct Investments:
- Lists angel investments we made in the past.
- Provides essential contact information and any other clarity required regarding the investments.
- Insurance Info:
- A clear list of our insurance policies, their coverage levels, and providers.
Regular Updates:
It’s vital to keep the Financial Guidebook updated. While our net worth may be updated frequently, the guidebook might be overlooked. I make it a habit to review it at least quarterly.
So, do you have a similar guide to your finances? Any suggestions on enhancing mine?
