Back to basics: A downloadable household balance sheet

A household balance sheet opens up a lot of discussion points.

The economy and credit crisis have affected nearly every client.

Maybe they haven’t lost their jobs but their salaries have likely been frozen at 2008 levels. Executive bonuses have been reduced — if not cut altogether — and stock options have dried up. Meanwhile, the price of everything from groceries to property taxes has increased, meaning less money is available for leisure items or retirement savings.

For many clients, this economic crisis has meant a return to the basics. That’s why Diane McCurdy, president of Vancouver-based McCurdy Financial Planning Inc., and author of How Much is Enough?has been giving all her clients her household balance sheet. The idea is to revisit where their money is going and whether certain expenses still make sense. “Priorities are different for everybody,” notes McCurdy. “It’s a good time to re-determine what are needs versus what are wants.”

Return to “Running on empty” homepage here.

(02/10/09)