Cashflow and Compounding

Using your personal financial statement

Building your PFS

12. Remember, there are tax considerations which have been made prior to entering some of the above numbers.

For example, the wages are entered as an after tax figure.

The income return on the shares is best entered after making an allowance for tax.

13. In regards to the property investment, because the income is less than the expenses (primarily interest in this example), you are negatively geared.

Therefore, making an allowance for a tax refund may be of value.

Remember it is always advisable to discuss such matters with your accountant.