How To Build The Ultimate Financial Folder | The 3-Minute Guide

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Hi i’m aaron from broke millennial for the financial diet welcome to the three minute guide brought to you by skill share in order to take control of your financial life you need to have all of the information about where you currently stand in order to start preparing for the future being in control is about much more than just having a budget or creating a debt

Payment plan it’s also about protecting yourself and your money so let’s dig into the things that you need to create the ultimate financial folder keep in mind this folder can be digital physical or a hybrid of both your net worth tracker calculating your personal net worth is a simple formula of assets minus liabilities assets are things like money in the bank your

Investments which includes a 401k or ira equity in your home jewelry even art liabilities are debts so thank your student loans credit card debt your outstanding auto loan you could create a detailed spreadsheet of all of your assets and all of your debts in order to track your net worth but to be honest you don’t need to check in on your net worth more than once or

Twice a year especially if it’s sort of depressing because your net worth is currently negative a list of all your credit cards one of my weekly rituals is to log in to each one of my credit card accounts and write down the balance in a spreadsheet this way my monthly bill is never a surprise and i am always able to keep my budget on track then i always pay off that

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Credit card bill on time and in full a master list of all of your credit cards is also a very helpful tool if you are playing the travel hacking game and churning for points a list of all of your debts and a repayment plan no ultimate financial folder would be complete without a detailed list of your debts how much they are who owns them what your monthly payment

Is you can couple this grid with a detailed repayment plan in order to motivate yourself to keep pushing towards that goal of debt freedom beneficiaries on all your accounts beneficiaries are the people who would automatically inherit your money if you were to die you can put a beneficiary on your bank accounts your retirement plans or your investments interesting

Fact a beneficiary can actually override what’s in a will so be sure to keep them updated as life happens for example my sister is currently my beneficiary on all of my accounts but when i get married next month that will get switched to my husband a list of your passwords you can use a password manager like lastpass keeper or dash line in order to stay sane and

Be protected however it’s also wise to have some sort of failsafe and another person does need to get access to your passwords in your accounts and finally a will and a power of attorney first a power of attorney means you can designate a specific person to make your decisions for you in the instance that you’re incapable of doing so yourself second i know it’s


Easy to put off having a will especially if you feel like you really have nothing to give but it’s still an important document having a will ensures that people know your last wishes and it doesn’t leave them guessing it helps keep any assets you have no matter how modest out of probate court where a judge gets to decide where your money goes you could do a cheap

Diy will through online sites like legal zoom or rocket lawyer you may want to seek help from an estate planning lawyer if you’re married if you have children if you run a business or if you have significant assets to protect this is an example of when a digital financial folder should also have a physical component as well you should keep copies of your will and

Your power of attorney in a fireproof safe inside of your home and let a loved one know where it is your ultimate financial folder is not only there to protect you but to also be of service to your loved one should anything happen to you a bit of a morbid thought i know but it certainly is an act of love okay time to shake off all of that heavy talk and discuss

Something fun like vlogging you can learn about this and many other skills using classes on skillshare which provides an easy and affordable way to expand your talents every week we’re featuring a different skill share class we think you guys will love this week’s class is how to vlog film edit and upload to youtube hosted by youtuber sarah dici this class teaches

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You the basics of creating editing and developing content for a successful vlog as always those skillshare offers a huge range of high-quality classes on must know topics from writing to fitness to business and it’s all about what you want to learn at an affordable annual subscription of less than ten dollars a month and sense skill share is sponsoring this video

The first 500 people to use the promo link in the description will get their first two months for you to try it out risk-free click the link in the description to check out this week’s feature class or any of the other classes skillshare has to offer have a money question you want to learn more about leave your topic idea in the comments section below i’m erin

From broke millennial for the financial diet and don’t forget to be here next thursday for a new 3-minute guide

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How To Build The Ultimate Financial Folder | The 3-Minute Guide By The Financial Diet

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