The Assets/Debt tab is where information about the customer’s net-worth is entered, calculated and stored. This is where you can start to get an accurate picture of your customer's financial health.
Assets include the monetary value of everything a person owns - including cash on hand, account balances, and physical assets that have value such as a home or a car.
Debts include the monetary amount of the liabilities a person owes money for - such as a car loan, or a mortgage.
A person’s net-worth is typically calculated by subtracting their total asset amount by their total debt amount.
Click on the Assets/Debt tab to enter information about assets and debts to get an understanding of a customer’s net-worth.
Strike up a conversation with your customers to find out the existing balances of their various financial accounts.
To enter Assets, click on the blue circle with a plus sign next to the Baseline button at the far right of the screen in the Assets section.
Three icons will pop-up - a money bag symbol, a graph symbol and a house symbol. If you hover your mouse over each of these icons you’ll see that the first is labeled Cash, the second is labeled Investments, and the third is labeled Physical Assets.
When you select one of the asset types, a box will pop up for you to enter the information about that Asset.
For each of the three asset types, Change Machine allows you to enter more details about the specific asset type through the subtype. For example, if you’re entering a new Cash Asset, it allows you to select whether you’re entering information about a checking account balance, a savings account balance, or any other type of cash asset.
Change Machine also allows you to enter other important information about the Asset type, including a name for the Asset (Savings and Loan Savings Account, or Melissa’s Car) and interest rates if applicable.
After you have entered all of the Assets for a customer, you can select “Baseline” at the top right of the Assets section.
By selecting Baseline, you are indicating all the Assets have been entered and progress can start being tracked over time. In this way, when you enter any new assets or new account balances in the future, you can compare them to the initial or baselined total of assets.
If there is an amount deducted every month, then you can add that value to the auto deduct section. This will automatically deduct the entered amount each month from the total income amount.
Helpful Hint: You can also add a group of assets for quicker data upload by selecting the Show Batch Entry button on the left of the Baseline button. This will have the same options as above and will save you time!
Like in Assets, to enter Debts click on the blue circle with the plus sign next to the "Baseline' button on the far right of the Debts section. A “New Debt” box will pop up and allow you to enter all the relevant information about that Debt, including selecting the type of debt.
The type of Debt can be selected by clicking the “subtype” drop down. Then you can select from the list to choose the Debt type, such as Mortgage or Auto.
There are spaces to enter all of the relevant information about the debt including:
Credit Card Limit/Original Loan Amount: this is the maximum amount of available credit on a credit card or the total amount of the original loan. This can usually be obtained from the customer’s credit report.
Baseline Balance: this is the current balance of the debt that the customer has on the account. This amount can often be obtained from the customer’s credit report. This is considered baseline because it’s the current balance that you’ll be tracking progress on paying down over time.
Monthly Minimum Payment: this is the monthly minimum amount that the customer is required to pay for that specific debt account. If your customer does not know this information, you can enter “0” here and return to this page at a later time.
Interest Rate: this is the annual interest rate that the debt account is charging. If your customer does not know this information, you can enter “0” here and return to this page at a later time.
There are also options to select whether the debt is urgent or productive.
- Productive debts are usually considered debts for purchases that increase in value over time, such as a mortgage on a house.
- Urgent debt is debt that is past due, such as rent or utilities, parking tickets or utilities.
And the option to select whether to debt is in collections or is a charge-off.
Once you have entered all the information for the debt record, click “Save”.
As with Assets, once you have entered all of the Debts for a customer, you can select “Baseline” at the top right of the Debts section. Similarly, this indicates all the Debt items have been entered and progress can start being tracked over time
Editing or Deleting Assets or Debts
To edit an asset or debt, click on the pencil icon to the far right of the asset or debt you want to edit.
This allows you to choose to edit the baseline information (if you’ve selected baseline previously) or the information specific to that month.