The last few articles I have talked about really examining where I am at financially, where my money is and is it working for me?  It took a stern talking to from my financial planner and a parking ticket to really get my butt into gear.

It’s not that I am afraid of this for my brother has his MBA, my sister works in finance and has her MBA and my sister-in-law works for a Canadian Bank quite high up.  Needless to say, our dinner conversations can range in topics, especially about finances and the market.  Now you may be thinking — HOW BORING and quite frankly sometimes it is boring however I am going to shift your perspective and get you to look at finances in a whole new way.

Imagine that you walk into your closet and you are trying to find something to wear for an evening out with the girls. Your closet is a mess and you cannot find anything. YOU HAVE NOTHING TO WEAR. Yes, I too have experienced this feeling. Perhaps it is our way of justifying another purchase.  Dealing with the situation at hand you begin to move things around so at least you KNOW WHAT YOU HAVE.  How can you make a decision when you do not even know what you have? Perhaps you have a pair of shoes so buried away deep in that mess that you actually forgot about them and when you rediscover them you are so excited that it feels like you purchased a new pair of shoes.  You quickly find what you are looking for and put together a great outfit for the night.  You go out however not before making a promise to yourself to really tear apart your closet and see what’s in there.

Your portfolio – Knowing What’s in There and Where You Are At

Sandra and I decided to add tangible examples to correlate finance to our daily life.

As Sandra already mentioned taking a look at your closet and organizing your clothes and shoes is a great way to start to begin organizing your finance as well.

Just as you organize your closet you can also organize your finances. For example my portfolio is organized by short term and long term instruments. My closet is also divided into two parts, my daily work clothes near the front and my weekend clothes near the back. My daily work clothes are then organized by color and by style and the same goes for the weekend clothes. For me this is a clear and easy function to use, saves me time and money.

I invite you to take a look at your “financial closet”.  First you need to pull everything out and then decide what you want to keep and what you want to get rid of.  Then you can organize it according to what works for you. Everyone’s closet will be different.

Over the next couple of months we will empower you to really learn what is in your “financial closet” and decide how you want to organize it.  We will breakdown the “closet” into different topics so you can take a closer look at specific areas: credit cards, types of bank accounts, different types of investments and so on.

The next article will focus on the credit cards part of your closet.

All of our best,

Sandra and Maritza




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