Know Your Money™

Build an inventory you can explain

A household balance sheet is a dated snapshot of assets minus liabilities. Cash flow records money coming in and going out over a period. You need both: a valuable home does not automatically provide cash to pay next month’s bills.

Your household inventory

1. Accounts: institution, account type, legal owner, authorized access and statement location. Keep credentials in a suitable password manager, never a shared worksheet.
2. Assets: cash, investments, retirement accounts, real estate and business interests. Record a valuation date and avoid counting the same asset twice.
3. Liabilities: mortgages, cards, loans and guarantees. Note balances, rates, minimum payments and who is legally responsible.
4. Protection: insurance provider, coverage summary, beneficiary records, renewal dates and professional contacts.
5. Documents: tax returns, deeds, estate documents and business agreements. Record secure locations; do not upload them to an unverified tool.

Practice: a balance sheet in one minute

Illustrative inputs. Net worth = assets − liabilities. This simple exercise ignores taxes and selling costs; negative results are possible. Values you submit are stored as a Gravity Forms entry with Wifey University.

Three questions for your next money meeting

Which numbers are estimates? Who can explain each account? What would either spouse need to manage essential bills independently?