KIRSTY APP - Good Money Management - Assets

Tangible assets (including items of value over, say, £2500) Jewellery and the like which could have a collectable value Home contents (what you could sell them for, not what they

cost - it may be worth having antiques valued)

Other (including special insurances)

Total assets

Liabilities

Mortgage/loans outstanding Hire-purchase and/or shop credit debts

Overdraft or bank loans

Other outstanding loans

Credit card balances to be paid off

Other debts

Total liabilities

Assets less liabilities reflect your total wealth. If your liabilities are more than your assets, you need to consider carefully how you would make repayments if you suffered a reduction in income, or had a sudden unexpected bill to pay or an unforeseen situation to make provision for.

Now look at your assets and recognize the purposes they fulfil and the security they represent. Recognize, too, the extent to which each helps you secure other desirable assets, such as your home. Your income will be helping to secure your pension and to add to your other resources. You will feel more secure about your health if you have health insurance to reduce worries about immediacy of treatment.

Your happiness and satisfaction with your lifestyle will be more complete if you have 'rainy day' money, if you can afford a good holiday from time to time and if you can pay for a wedding in the family or help children to buy their own homes. You will feel more secure, too, if you have the knowledge that you can help others if the need should arise, and that you will be able to pass on something to your children in due course.

You need, too, to consider the implications of taxes. You must take account of your present position, but should also think about your future position, taking into consideration increasing age and possible future catastrophes (such as a stock market crash or personal, husband or partner incapacity because of illness, etc.).

It follows that you may need to decide to change the proportions of some of your assets so that you are better served by your resources.


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Savings And Investments

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