Financial Statements

Using the same trip analogy, if the net worth is your location as you travel, your income on your “cash flow” statement is the speed you’re traveling. This is the second number you should be tracking. Taken together, your net worth and cash flow will help you benchmark your progress against others and yourself.  … [Read more...] about Step 04: Create an Income Statement to track cash flow

You should be treating your finances the same way a business does. The first document every successful business uses to track it’s health is a balance sheet. Why? If you give this document, to any financial advisor, they will be able to tell in 60 seconds your exact financial position. Your primary goal is to grow the number at the bottom of this document. … [Read more...] about Step 03: Create a Balance Sheet to track your Net Worth