Before we can go forward we have to know where we are now. Or rather you have to. When Robinson Crusoe swam ashore from his shipwrecked boat, the first thing he did was check out what stores and guns and ammunition he had. Once he knew that, he could assess the situation and move forward.

So you are going to swim ashore and begin your new life. The first thing you have to do is to take stock. Find out what you’ve already got, what can be used, what can be discarded or discounted, what you owe, what you are owed, what basically is your net worth.

We’re going to do a full financial audit on you and your life. If you don’t know where you are before you start, you can’t really work efficiently towards becoming wealthy. It’s a wise man who lays out his tools before he begins the job.

Here’s your check list. It may need adapting to suit your individual circumstances. Start with the big figures to get a picture of where you are right now overall:

Now you have an overall figure, you need to look at your typical inflow and outflow of cash on a monthly or annual basis – you can choose which you assess, but all figures have to be made either monthly or annual.

This may not be ideal for your circumstances but I’m sure you get the idea. Don’t be tempted to skip this exercise. Even if your financial situation is none too rosy, it’s good to face up to reality so you can take positive action to address the situation.