Prosper Newsletter: May 2006 > Financial
You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.
Best Education Ever Helps To Find Dreams Put In The Closet!
Thanks for being my personal coach. You and this course have helped me more than I could ever explain. So I will see if I can put this into words because, this course has shown me the light at the end of the tunnel. This has all helped me get a better handle on my spending. I know right now where I'm at the end of the month by having total control of my cash flow. I was amazed at my financial statement spread sheet. I have never sat down and filled one out, let alone anyone show/talked to me about one. That gets me excited, from the Financial Risk Statement to the Cash flow Management to a Financial Vision Statement. I have learned a lot and have a lot of learning to do. You have helped me to find my dreams that were put on the top shelf in the closet. You are helping me go from the left to the right quadrant! This is the best education that I have ever had and I am very excited for my future. You can't put a price on personal and mental developments. Thank you for being my coach. You and this course have me really fired up!! My debt free date is: 06/2012.
Thank You Again,
- Roger T
Ashland, WI
Always keep your personal financial statements up to date. A big part of your family's financial management routine should be to keep your various financial statements up to date on a regular basis. The most important statements are your Balance Sheet and your Income Statement. These are also the most fundamental financial statements used by every business.
Your balance sheet is where you list all of your assets, subtract all of your debts, and figure your net worth (Total Assets - Total Liabilities = Net Worth). Your Net Worth is the best measure of your current level of wealth. Set a goal to increase your Net Worth by a certain amount each month. That certain amount should be at least your accelerator margin or more. Updating your balance sheet on a monthly basis will allow you to watch your net worth increase month after month. This visible monthly progress will help you stay motivated and focused on the goals you have set for debt freedom and financial independence.
Your income statement is where you will keep a month by month record of where your money came from and where it went. Categorizing your spending and logging the monthly totals allows you to make the important managerial decisions that lead to financial freedom. Did your utility bills increase or decrease over the last few months? What can you do to make sure they decrease in the future? What are your goals for spending in the various categories for next month? Keeping your income statement up to date allows you to become an effective manager of your cash flow which is the most important skill or habit you can develop if your goal is financial independence.
Keeping these financial statements up to date allows us to make the wise and informed choices that will lead us toward our vision of debt freedom and financial independence.
