It is our sincere wish that everyone have a happy, wonderful life with none of pitfalls inherent in our modern lifestyle such as divorce, job loss, illness and death. But unless your name is Cinderella, you need to understand that there are harsh realities you need to prepare for. This is not fiction we're writing here.

One of first steps on your journey to financial security is to know what your present state of affairs is. Otherwise, how can you map out a success strategy if you don't know where your starting point is? Even Dorothy had a starting point to escape from Oz. It may be unpleasant to face reality, but you gotta know.

Make a file, a notebook- some kind of recordkeeping device that works for you. You can buy books for that purpose, use a computer program, whatever. The important thing is that it be comfortable and easy for you. Don't add to your stress by trying to use a system that takes a lot of effort on your part to work with. My husband likes to do his recordkeeping on computer but I prefer a notepad and simple accounting ledger.

The next thing to do is find out how much money you have right now in cash, checking and savings accounts. If you are bill payer for your household, this should be easy, but if you've not been involved in that process previously, you may encounter resistance, even suspicion. It may take a diplomatic effort on your part to reassure your mate that your intentions are honorable. Each partner in any domestic relationship has both a right and responsibility to participate in financial processes of partnership. Just as you wouldn’t invest in a business then blindly allow someone else to control money, it is unwise to invest in a relationship with fruits of your labor yet not have a hand in investment process at home.

When you think of investments, you may think stocks and bonds, but in truth, everything you spend money on is an investment. Buying groceries, paying doctor bills is an investment in your health. That big screen TV you've been wanting would be an investment in your entertainment. Getting up every day and going to work to earn a paycheck is an investment in your financial welfare. Paying bills is an investment in your good credit. Paying electric bill is an investment in keeping lights on. Instead of seeing things as expenses, consider them as investments. This is important as it programs your mind to see each expenditure as important and worthy of consideration.

When verifying income - In general, lenders want to see at least 2 years of self employment history, sometimes they want to see 3 years. They will want to see this history verified in tax returns, usually. Sometimes lenders will figure your income as being average income you claimed on your income taxes as profit, not your gross business income. Sometimes lender will figure your income as lowest of two years and sometimes as highest of two years. Talk to your mortgage broker or lender and find out which way they verify. Sometimes lenders will figure a portion of your write-offs or deductions back into your income. There are ideas of other ways that a lender may be able to verify your income and if you are self employed it will help you to be able to show a more of your income.