With 4 months left of this year, we ask ourselves…What have we achieved financially, so far this year or this month? What have we achieved TODAY?
Businesses have quarterly financial statements to share the highlights, challenges and goals faced by the business during that period… We can adopt the same practice and consider our personal finances as our personal business, whether it is a quarterly, bi-annual or an annual, end of year review. Whatever suits you best.
We can calculate and measure our wealth via Net Worth: The total of our Assets (Cash, Savings, Property, Investments…) minus our Liabilities (Credit Cards, Loans, Expenses, Costs…). We are left with an approximate figure of our wealth. (Not considering Capital Gains Tax, when an asset is sold, or Appreciation gained on property).
Alternatively you might just want to track your Cash and Savings Total separately from other assets for a more accurate calculation of your present wealth. This is because you will not be charged Tax whenever withdrawing those funds, so the figure will not be reduced any further.
“…Predict future Cash Flow and Seek Investments.”
Profit & Loss Templates can be found online if you prefer to make an Excel spreadsheet or if you’re more of a journal fan, you can scribble down your income and expenses and review your finances manually…. Learning to read financial statements is essential as it can save you money long term if you spot over-charges or discrepancies. It can also help you look for income increasing opportunities by working with tax laws depending on income amount; predict future cash flow and seek investments.
Whether you have taken time to learn something new or financially beneficial today, added to your income or perhaps negotiated prices you have taken steps towards a more secure financial future.
Financially, where do you want to be, by year end? Or 5-10 years from now? Let’s keep pushing forwards and take each moment in our stride.Wishing you ever increasing cash flows, abundance and wealth!