Acting your age and not your shoe size is all too often easier said than done.
Many, dare I say most, of my adult-aged friends would be unable to produce several of the documents described here. That just tells you something about the kind of riffraff with whom I socialize.
Fear not riffraff friends and other would-be-grownups, these items are not at all difficult to procure but are nonetheless necessary to your personal stability and progress.
It should be noted, that it does not count towards your adulthood status if your spouse has all of these documents and you do not.
1. Statement of Your Net Worth
So you think you’re going to Sushi Zen but you wind up at McDonalds because you thought you had enough gas in the tank, but you started further away from those sweet California Rolls than you had originally estimated. Are you picking up what I’m putting down?
In layman math, net worth is calculated: All of Your Money – All of Your Debt
It might not require a whole document per se, however, it is a starting point that every adult should know in order to create an appropriate financial plan.
2. Statement of Your Goals
What on Earth are you doing?! Why save? Why spend? Why get a better job? Why buy a house? Why rent? Make each financial decision with the purpose of improving your quality of life, because that is just the whole point. Write your goals down. Change them as you change, but always be working towards something, otherwise, you’re just working.
3. A Budget
If net worth is your current location and goals are your map, then a budget is your car. If you take care of it and get regular oil changes, it’ll get you where you need to go. The better you maintain it, the faster you’ll get there.
Alright, enough with the car analogies, you get the point.
4. A Will
It’s not morbid, it’s not bad luck, it’s responsible. If you don’t think you have enough assets to warrant a will, you’re wrong.
5. An Inventory of Your Stuff
If you like it, take a picture of it. No one plans for a fire, flood or tornado but they happen. Recovering those things you’ve worked so hard for will be much easier if you know and can prove exactly what you had.