Why Do You Need A Financial Statement?

Have you ever looked at your bank or credit statements and realise that you have spent more than you thought you did?

A simple and easy way to keep account of your income and expenditures is to have a personal financial statement.

Your financial statements provide information about your financial position and performance and can help you to make wise economic decisions and can assist with budgeting.

Your financial statements give you the tools to monitor your spending and increase your net worth. The key to building wealth is to focus on increasing your net worth and decreasing your liabilities. This will help you to secure a financial future that can provide for you when you retire.

What Does Your Financial Statement Tells You?

Your Financial Statement gives a formal record of your financial activities, it determines

  • How much money you have made
  • How much money you owe.
  • How much money you have invested
  • Your ability to generate cash, the sources and uses of your cash
  • Your ability to pay debts

Your financial statements helps you to be more aware of your liabilities (what you owe), assets (what you own), and net worth (your assets minus your liabilities). If you are not tracking your net worth, start today by

Your Personal Balance Sheet

Your Financial Statement is your personal balance sheet that provides an overall synopsis of your wealth at a specific period in time.

Your financial statement reflects your financial condition and will help you to measure where you are now and where you want to be. Periodically you can use it to track your progress towards your financial goals and evaluate your current financial situation and changes in circumstances.

To get an accurate estimation of your income needs at retirement you also need to predict what inflation will be and how long it will be before you retire.

The keystone of planning your retirement is financial planning. Planning allows you more satisfaction and security in retirement. Many people tend to avoid thinking seriously about retirement until it is only a few years away. Start making and implementing your retirement plans as early as you can. Early planning allows you to gain a sense of control over the changes retirement may bring and will allow flexibility to changes in family structure, your health, and the economy. Preparing your financial statement is the cornerstone of retirement planning. For more information on your retirement planning needs; speak with an advisor today.

Using Your Financial Statement For Retirement Planning

Your financial statement reflects your financial condition and will help you to gauge where you are now and where you want to be. You should use this tool to regularly track your progress towards your financial goals and evaluate your current financial situation and changes in circumstances.

To get a fairly accurate state of your income needs at retirement you also need to predict what inflation will be and how long it will be before you retire.

The key component for your retirement success is financial planning. Planning allows you more satisfaction and security in retirement. Many people tend to avoid thinking seriously about retirement until it is only a few years away. Start making and implementing your retirement plans as early as you can. Early planning allows you to gain a sense of control over the changes retirement may bring and will allow flexibility to changes in family structure, your health, and the economy. Preparing your financial statement is the cornerstone of retirement planning. For more information on your retirement planning needs; speak with an advisor today.