Financial Statements Revisited
Posted on Sep 22, 2007 under Financial Literacy, Financials | 6 Comments
When I first started this site, I wrote about financial statements; in particular, the balance sheet and the income statement. People typically think of these in conjunction with companies, but they can be incredibly useful for individuals as well.
If you don’t already use these financial statements in your personal finances, you should probably start with the income statement. If you’re unfamiliar with how it works you can check out the above link and email me with questions. The reason I suggest you begin with it first is because it allows you to get a handle on all of your expenses. Most people are very aware of how much money they have coming in, but they need to do a better job of keeping track of where their money goes. Keeping a personal income statement will also tell you whether or not you’re spending more money than you’re earning, and by how much.
Once you’ve got a handle on the income statement you can move on to the balance sheet. From the balance sheet you will determine your net worth. As you continue to update your balance sheet you will be able to see the trend in your net worth. Hopefully you will see it continue to increase.
The most important aspect of these financial statements, however, is that they allow you to make informed decisions about your finances. You’ll be able to determine how certain expenditures or purchases will affect your overall financial picture. You’ll also be able to better formulate a plan that will get you where you want to be and allow you to reach your goals.
Subscribe to Fiscal Musings | Digg This! | Stumble it!
by DW, on September 27 2007 @ 1:40 pm
Cool article. I think I found your site from get rich slowly. I am going to subscribe to your blog. Check mine out if you have time. thanks,
by wedding venues, on February 16 2011 @ 1:27 am
Ive been meaning to read this and just never obtained a chance. Its an issue that Im pretty interested in, I just started reading and Im glad I did. Youre a great blogger, 1 of the very best that Ive seen. This weblog absolutely has some data on subject that I just wasnt aware of. Thanks for bringing this stuff to light.
by Reverse Search, on May 6 2011 @ 7:45 pm
Resources these as the one you mentioned here will be incredibly useful to myself! I’ll publish a hyperlink to this web page on my personal blog. I am certain my site guests will come across that quite effective.
by Irving Hewlett, on August 24 2011 @ 5:04 am
The screen in my blogger website is way too small. I don’t know how to make it bigger, do you guys know how to make blogger videos in your site bigger? .
by mannequin head, on September 9 2011 @ 12:10 am
I cling on to listening to the news bulletin lecture about getting free online grant applications so I have been looking around for the finest site to get one. Could you advise me please, where could i acquire some?
by luxe convertible sofa, on January 5 2012 @ 2:38 am
Properly mentioned. I by no means believed I might agree with this opinion, but I’m starting to view issues from a different view. I’ve got to investigation much more on this since it looks very fascinating. A person matter I really don’t comprehend even though is how everything is associated together.