Why You Should Keep An Asset Inventory

Being financially organized yourself is a great thing, but if anything should happen to you, would the people you love know where to find your important records and assets? Keeping a list of important documents and where they are located, and providing copies for your spouse, attorney, executor of your estate and other close relatives of an asset inventory spreadsheet can really ease the burden on anyone involved in taking care of your affairs.

Keeping an asset inventory is easy. You can access an asset manager template here. Simply print out a copy (or copy and paste into your spreadsheet software), fill it in, make a few copies to send to the appropriate people and scan it in to your computer if you like. You may also want to keep a physical printout in a safety deposit box or fireproof lockbox in your home along with other critical non-negotiable documents. (Please note there are two worksheets: the Asset Manager and Personal Info tabs).

While sorting out the locations of your important papers, you may wish to start a special file for financial records if you have not already done so. A filing cabinet or a designated filing drawer is necessary, as binders get overfull quite quickly.

Separate your filing system into three parts: Current Records (that you will need to access throughout the year), Long Term Records and Tax Records.

Current records include:

• Car insurance
• Health insurance
• Credit card and bank statements
• Mortgage statements and other loans
• Tuition receipts and other education related records
• Retirement funds including pension plans, profit sharing and stock option plans
• Stockbroker records, stocks and mutual funds

Long term records include:

• Life insurance
• Wills and Living Wills
• Power of Attorney forms
• Birth certificates and social security cards
• Citizenship records
• Marriage, divorce, pre-nups or adoption records
• Title deeds
• Business and partnership agreements
• Burial arrangements, cemetery deeds
• Military discharge papers

Once you have your filing system in place, make sure to discipline yourself to file things in a timely manner, and keep your spreadsheet up to date.

About the Guest Blogger: Linda Bustos is the Marketing Director for Creditor Web, where you can find information on personal finances and credit cards. She is also an active member of the Destroy Debt debt forum.