How to Get Out of Debt Guide – Part 2 of 6

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Now that we have gathered all of our paperwork in step 1 we are going to plug our numbers in and crunch them. Actually, I'll crunch them for you. I have created a simple spreadsheet for you to enter all of your assets, liabilities, income and expenses. As I mentioned before honesty is key. If you are not honest about your numbers then you will never know where to go from here or get out of debt. These numbers will determine your NET worth as well.

Your net worth to the world is usually determined by what remains after your bad habits are subtracted from your good ones. - Benjamin Franklin

Day 2 - Your Personal Financial Statement (PFS)

A personal financial statement or as we will refer to it a PFS, is your financial report card. It gives an overview of the assets, income, expenses and debts of you or your company. It is often used by banks to assess a person or corporation's financial health.

I have created a simple Financial NET Worth Calculator for you to download. You will need Microsoft Excel to open this or you can use Google to open it. If you do not have Microsoft Office you can create a new Google account and then upload it to your Google Drive. Google does a good job at conversion but if all else fails a simple pen and paper will work perfectly as well.

Step 1: Download NET Worth Calculator

This is just step two to get out of debt and live your best life. Even in this simple form (our Simplified Personal Financial Statement from the worksheet above) knowing your NET worth and your CASH FLOW is a great start. The thing to point out here is that there are no losers. You may not be a Gold or Platinum on the podium but at least you made it. The Honorable Mention is just a starting point. God has big plans for you. Right here and right now you have the choice to make the next move for good or for bad. The past is behind you. Lessons learned. It's time to make the best of this life. It may not be easy but it will definitely be worth it.

When things got hard, you started looking for something to blame. Like a Big Shadow. Let me tell you something you already know. The worlds aren’t all sunshine and rainbows. It's a very mean and nasty place and I don't care how tough you are it will beat you to your knees and keep you there permanently if you let it...

You've gotta hit as hard as life. It isn’t about how hard you hit, it's about how hard you can get hit and keep moving forward. How much can you take and keep moving forward? That's how winning is done.

If you know what you're worth, Go out and Get What Your Worth. But you gotta be willing to take the hits. And not pointing fingers saying you aren’t where you wanna be because of him or her or anybody. Cowards do that and that aren’t you. You're better than that. -Rocky Balboa (Rocky VI)

Next Step: Where You Stand on the Financial Podium

Previous Step: Getting Started

Craig Kelley

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Craig is the author of How to Get Out of Debt and an avid blogger. He strives to help people maximize their time and succeed financially as well as personally. He has been a leader in several start-up companies including Mokumax Virtual Domains & Servers, Inc. and currently HealthcareSupplyChain. Read more...

5 responses to How to Get Out of Debt Guide – Part 2 of 6

  1. Is there an error on this web page? It seems to stop abruptly after the link to download a Net Worth Calculator … and the partial link there generates a 404 error.

Trackbacks and Pingbacks:

  1. How to Get Out of Debt Guide - Part 1 of 6 -5 Minutes a Day - July 6, 2012

    […] Next Step: Your Personal Financial Statement(PFS) […]

  2. How to Get Out of Debt Guide – Part 3 of 6 -5 Minutes a Day - July 10, 2012

    […] started in the first 2 steps with gathering our financial documents and then entering them into the NET Worth Calculator. Today we will look at the numbers and explain what they mean. This will establish our starting […]

  3. How to Get Out of Debt Guide – Part 5 of 6 -5 Minutes a Day - July 18, 2012

    […] loan balance from the expense sheet on the PFS (Personal Financial Statement) that we filled out in Step 2. We will KO that debt […]

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