|
Keeping forward motion is crucial to your journey as a 1st generation financially successful person. Your legacy is your family’s new trajectory. We are rooting for you, every step of the way! Cheers to your success, your mental well-being, and the pursuit of caring for your family for generations to come. J
Personal Financial Statement
|
|
Sure the credit card was used and generally paid off every month.
Savings were automatic deposits in a separate financial institution and sheltered i.e. an in-person trip to the brick & mortar is required for any & all withdrawals—no debit card had been issued. Good job!
There were few, occasional periods of having to carry-over a credit card balance here and there during the year because life happens. However, nothing that can’t be addressed as part of the year-end ritual i.e. the clean-up of any residual carry-over of credit card balances as well as an overall review of all account balances vs. the year’s financial plan.
The good behavior resulted in not so good year end balances. What’s the problem?
Hmm time to call help—that call led to being asked to complete a personal financial statement (right).
Whewhoo! A positive net worth! Wait, if that’s such a good thing, why wasn’t there good money vibrations instead of feeling the need to seek financial help? That’s when a huge discovery occurred—Looking good on paper is not the same as being good with money.
|
Need more financial literacy please…Net Worth<>Cash Flow<>Leftovers. Net Worth is the financial big picture. However, the big picture is heavily reliant on daily decisions—the movement of money in and out of the household (cash flow)
—operating cash flow (e.g. main activities),
—investing cash flow (e.g. assets), and
—financing cash flow (e.g. credit cards, mortgage loans). Aha!
|