00pg – Recovery Road Online

Creditor’s Name

Date of Debt

Original Amount

Present Balance

Monthly Payment

Months in Default

Co- Signer

The Quick Way To Find Things

WORKING THE RECOVERY STEPS

STEP FOUR
Made a searching and fearless moral and financial inventory of ourselves

FINANCIAL INVENTORY

Our mental obsession over money was a key driver of our illness. As disclosed in our dream world, “When succeeding we gambled to dream still greater dreams, when failing we gambled in reckless desperation as our dream world came crashing down”. We were trapped in this cul-de-sac of defective logic. If we were winning, we were on a roll and had to play our rush. If we lost, we felt this insane compulsion that we couldn’t leave until we won back “our money”. We couldn’t face the grim reality that this lost money was no longer ours. Even after many hours of playing when we were close to breaking even, we sometimes felt we had to stay and continue gambling to justify the time we had already spent. Money was at the heart of this mad reasoning.

The only escape from this cycle of twisted logic is an honest and fearless financial inventory. We need to calmly develop a realist plan to not only repair our financial wreckage, but one that allows us to lead an enjoyable, comfortable life going forward. We can do a financial inventory in a couple of ways. Probably the best way is to complete a comprehensive pressure relief meeting using the forms that are available through Recovery Road Online. This is especially recommended if you have an active pressure relief committee and/or chairman in your local area. Also, this approach has been found to be especially helpful to folks with extensive financial problems that may seem hopeless (by the way – they’re not). In addition, a comprehensive pressure relief meeting is also usually advisable for people with complex finances such as those who own their own businesses.

An alternative approach is just the simplified inventory at the end of the chapter. The fundamental objective of both approaches is the same – developing a household budget that allows for covering all of the critical expenses (including a modest entertainment allowance) as well as the servicing of our gambling debts to the extent that we are able. Once we establish and began living within this budget (which is usually much easier than we think) the pressure to gamble in order to solve our financial problems begins to be relieved.

The financial inventory consists of four parts:

1. Monthly Income (Worksheet 4F)

2. Expense Budget (Worksheet 4G)

3. List of Debts (Worksheet 4H)

4. Debt Service Schedule (Worksheet 4I)

Worksheet 4F – MONTHLY INCOME

Income Source	Description/Comments	Amount (before any deductions)
Primary Job
Secondary Job
Unemployment
Disability
Pension
Social Security
General Assistance
Food Stamps
Property Income
Investment Income
Alimony
Child Support
Spouse’s Available Income
Other Income (describe)
	Total Monthly Income

INSTRUCTIONS:

Most people experienced with computer spreadsheet programs use them for this and the following worksheets.

In the middle column describe the source of the income and make any comments. If income varies from month to month (i.e. sales commissions), make that note here. If there are any garnishments or if the income is going to expire soon that should be noted here.
In the right-hand column, make your best conservative estimate of the average monthly amount. If the income is weekly, multiply the amount by 52 and divide by 12, double bi-monthly amounts. Initially don’t include any occasional or uncertain income sources such as annual bonuses, tax refunds, expected gifts etc. Try to keep this as simple as possible. In the Spouse’s Available Income, only list the amount that will go towards their share of family expenses. Their wages or other income should not be used to pay gambling debts.
Add up the amounts and put the sum under Total Income.

Worksheet 4G – MONTHLY BUDGETED EXPENSES

Mortgage – First			Social Security (FICA)
Mortgage – Second			Federal Income Tax deducted from pay
Home Equity/Line of Credit			Anticipated additional Federal Income Tax*
Rent			State Income Tax deducted
Home maintenance and repair*			Anticipated additional State Income Tax*
Groceries/Toiletries Household Supplies			Property Taxes*
Restaurants (all meals not included in allowances)			Other taxes
Clothes*			Medical Insurance Deducted from Pay
· Member			Additional Medical Insurance
· Spouse			Medical Co-payments*
· Children			Doctor – Non reimbursed*
· Other			Medications
Electricity			Dental Insurance Deducted from Pay
Gas			Additional dental insurance
Water			Dental Co-payment*
Garbage			Dentist – Non reimbursed*
Sewer			Optometrist*
Internet			Glasses/Contacts*
TV			Therapy/Counseling
Telephone – Land Line			Other Medical Expenses
Cell Phone(s)			Life Insurance
Other Utility			Long Term Disability Insurance
Housekeeping			Homeowners Insurance
Landscaping/Gardener			Auto Insurance
Subtotal #1:			Subtotal #2:

INSTRUCTIONS:

Most people experienced with computer spreadsheet programs use them for this worksheet. These programs greatly simplify regular updating. In addition, these programs make it easier to develop subcategories to see clearly where household money is going if it becomes necessary to cut expenses.

For people who have never created a household budget, it will typically take a few months before they can accurately forecast their expenses. To be effective this has to become a working document that is updated on a regular basis.

1. For normal reoccurring expenses, just enter the monthly amount. Where regular expenses vary throughout the year (ex. gas and electric depending on climate), use a “conservative average amount”. By this we mean not to use the worst case every month but make certain that the total yearly cost is covered in the budget.

2. Starred items (*) indicate that these are expenses that typically occur annually or occasionally rather than monthly. Make best conservative monthly estimates and include them in the budget. For these items, it is usually a good idea to set up a separate savings account that is paid into monthly to cover these expenses when they come up. Often times the unexpected car repair, home repair or medical expense can totally undermine the budget if money was not set aside for these items.

3. Subtotal all of the columns and then add the subtotals together to see the total monthly expenses. Compare this with the total income in Worksheet 4F. The difference is the amount available every month for paying gambling debts.

Worksheet 4H – LIST OF CREDITORS

INSTRUCTIONS:

Most people experienced with computer spreadsheet programs use them for this worksheet. These programs greatly simplify regular updating.

List all creditors in the following order:

a) bad checks or debts for which you may be prosecuted

b) court ordered judgments

c) credit union, bank, or finance company loans

d) back taxes

e) credit cards

f) bookmakers, casinos, loan sharks

g) family and friends

h) others

Worksheet 4I – REPAYMENT SCHEDULE

Creditor’s Name	Original Balance	Current Balance	Monthly Payment	Date of First Payment






	Total:

INSTRUCTIONS:

Most people experienced with computer spreadsheet programs use them for this worksheet.

Based on the available funds for debt repayment (difference between monthly income and budgeted expenses), develop a realistic payment schedule. This will often require notification of creditors that the amounts to be paid and the dates when the payments can be made may not be what were originally agreed upon. Your sponsor can normally provide assistance on how this is best handled.

If you haven’t yet completed the Moral Inventory section, click on that link, otherwise it’s time to move to Step 5.

Step Four – Moral Inventory

Step Four