Taking a Financial Inventory

Hey fellow Pocket Changers! Today, you’re going to get a sneak-peek into our financial inventory before we dive into the world of financial independence. Evaluating our financial life is a crucial step to achieving our goal. Without knowing where we are starting, how can we possibly know which direction to move? For example, if you pull up your flashy smart phone to navigate to a new restaurant, it needs to know your current location to accurately provide directions to your destination. Similarly, to reach our destination of Financial Independence, we need to use our financial GPS to determine our current location.

Accounts, Accounts, Accounts

With a plethora of options for accounts, it may be a challenge to wrangle all that information up in one go. Presuming this to be the case, it would be a wise investment of  time to sit down and review your accounts in order to understand the big picture. Give yourself a solid chunk of time. While I enjoy creating my own documents, in an effort to not reinvent the wheel I made it a few months down the road before re-creating our own documents. Check out The Goods page for the Financial Inventory worksheet!

Here are a couple links to Financial Inventory Worksheets courtesy of Charles Schwab and Vanguard. The document from Charles Schwab is a 2 page PDF, while the Vanguard option has 19 pages, so make the best choice for you. I’d recommend printing one for ease of access. This will be well worth the effort, especially if this hasn’t been done before.

SIDE NOTE – I think having a hard copy of this info is great, but sometimes info in electronic form does the trick. If that’s up your alley, check out the free tool Personal Capital. They have a great set of tools to help with budgeting, tracking net worth (we’ll get to this later) and more! We’ve used this for several years, and can’t get enough of the ease of use and big picture it provides!

Mr & Mrs Pocket Change’s Inventory

Now, for the good stuff. We (Mr and Mrs Pocket Change) don’t have much to our name, because we’ve tried our best (and many times without an alternative) to live a frugal lifestyle, living off of what we’d consider Pocket Change. As we mentioned in the Introduction | Financial Independence is the Goal post, we’re starting the financial freedom road on much lower salaries than many of our colleagues in the Financial Independence world. However, because of this, our financial inventory is also short and sweet! Let’s jump in!

Financial Inventory Day 1

Account DescriptionTotal Value
Current Net Worth$13,947.03
Checking Acounts$2351.91
Savings Accounts$8436.20
Retirement Accounts$6915.94
Credit Card Balance-$3757.02

As you can see… we don’t have much to report. We don’t have a large savings account balance and we don’t currently own a home (coming soon, hopefully!). However, we also don’t have student loan debt, and don’t have loans on our cars. Our Pocket Change Lifestyle has already given us some freedom from debt, but our goal is to take that a step further – to become financially independent!

Time to Check Your Pockets for Change!

How did your financial inventory turn out? Let us know in the comments! Now that you know what you have in your inventory, it’s time to take the next step!

Leave a Reply

Your email address will not be published. Required fields are marked *