Welcome to Day #2 of Money Triage, a special 5-day series about dealing with financial uncertainty.
Today’s exercise is all about identifying each and every one of our resources, both the tangible and intangible, that we can draw from during a money emergency.
By taking stock of the personal capital at our disposal, we’ll be better poised to act and respond to the changes and opportunities that lie ahead.
Here’s a Google spreadsheet template you can use to track all of your resources; simply click the link and then click the blue “Use Template” button in the upper right corner to create a file you can edit. Or you can simply make a list on paper.
Identify Your Liquid Assets
As you probably know, the term “liquid” refers to money that we can access with reasonable ease if it’s absolutely necessary. Make a list of yours. These sources might include:
- Cash and coins
- Savings and checking accounts
- Mutual funds
- Money market funds
- Publicly traded stocks and bonds
- Some retirement accounts
Other Potential Money Sources
List any assets you own that aren’t immediately liquid but might be able to be converted into cash:
- Certificates of Deposit (CDs)
- Money owed to you by clients or borrowers
- Valuables you could potentially sell, such as precious metals or jewelry
- Business inventory you could sell
Sources for Borrowing
If you absolutely had to, list all the sources from which you could potentially borrow money:
- Home equity loan
- Bank or financial institution
- Loan against a retirement account
- Business loan
- Line of credit
- Credit card company
- Family member or friend
List any equipment you own that might be useful for earning money:
- Computer and printer
- Camera, video camera
- Kitchen appliances
- Landscaping equipment
- Moving dolly
Next, list any raw materials you own:
- Home improvement supplies
- Building or remodeling supplies
- Office supplies
- Art supplies
- Land, a garden, or containers for growing food
- Specialty foods and ingredients
Now, list your personal skills, gifts and professional experience:
- Special talents and gifts
- Tutoring abilities
- Technology skills
- Physical Skills
Review Your Resources
How do you feel after doing this exercise? Are your resources fewer or greater than you expected? If you have any comments or suggestions to add to this post, leave a comment below or mosey over at the Money Diet Community Group.
Tomorrow’s post will be all about identifying new opportunities in our rapidly-changing world.
Until then, stay safe and well,
P.S. After completing this exercise, you might also want to calculate your net worth for a more complete picture of your financial health.