Cashflow and Compounding


Using a financial statement to set goals

If you are currently holding a number of investments

3. If you are currently holding a number of investments:

  • project the expected value of each investment using a return estimate which takes into consideration taxes and fees. Write this projection in your financial statement
  • measure the actual investment return in 6 months, 12 months, 3 years and 5 years against these projections
  • re-assess the quality of each investment
  • assess opportunities to further use your equity and current cashflow
  • set a goal as to the number of income producing investments you would like to be holding in say, 6 months, 12 months, 3 years and 5 years.