As the year draws to a close, it’s the perfect time to take stock of your family’s financial health. Creating a year-end financial statement is a great way to understand where your money went this year, set goals for the coming year, and vision cast where you want to be in the years ahead. Here’s how you do it:
- Inventory Your Financial Assets – Review the year-end balance of the following accounts:
- Bank statements: Include checking, savings, and any other accounts.
- Investment accounts: Gather records of 401(k)s, IRAs, brokerage accounts, or other holdings.
- Loan statements: Include mortgages, car loans, student loans, or personal loans.
- Pay stubs or income records: Account for all sources of income, including side gigs.
- List Liabilities – Next, account for what you owe:
- Debt balances: List all credit card balances and interest rates.
- Loans: Record amounts owed on mortgages, car loans, or student loans.
- Outstanding bills: Include medical bills or any unpaid taxes.
Subtract your liabilities from your assets to determine your net worth.
Once you’ve calculated net worth, review trends and analyze where things are going. Is your net worth increasing or decreasing? Continue to calculate your net worth each year to see how the decisions you make each day are gradually helping you to build wealth over the long term.
Did You Know?
Your employer sponsors this financial wellness benefit from Francis LLC. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
