Organizing Your Personal Finances 101

For the process of buying investment property, organizing your personal finances is crucial and can save you a lot of time and aggravation.

It is best to get organized before undertaking the task of buying rental property. You'll have less stress and be more focused and effective throughout the ordeal.

Steps for Organizing Your Finances

1. Make a list of all monthly bills and income. This will outline in black and white just how you are spending your money. Make it a priority to pay all bills that are overdue.

2. Make a list of the values of all your current assets (house, car, furniture, bank accounts, etc.) and total them. Make another list of the amounts of all your current liabilities (mortgages, car loans, bills, etc.) and add them up. Then, subtract your total liabilities from your total assets. The result is your financial net-worth.

3. Obtain a copy of your credit report. Review the report and clear up any errors or problem areas.

4. Make copies of your tax returns from the previous couple of years.

5. Get copies of your W-2 forms, payroll stubs, and all bank account statements. If you rent, make a copy of your lease (if there is one), or get your cancelled rent payment checks or receipts. This is necessary to verify your monthly rent level.

With all this information gathered, you'll have a much better handle on the actual state of your finances. And this will certainly come in handy when you approach lenders and sellers.

The perfect solution for accomplishing this is with Quicken Personal Finance Software. It helps you manage your spending, savings, investments and assets.

For more in-depth information about organizing your personal finances, please visit The Landlord's Library book collection. It's the ultimate, one-stop source for practical, in-depth information on the entire subject of residential landlording.

Return from Organizing Your Personal Finances to
Buying Investment Property