Cashflow and Compounding

What is a personal financial statement?

The personal financial statement and investments

The personal financial statement is focused on investments as opposed to investment structures. The investments shown are the actual underlying investments that people typically invest in.

For those with more advanced tax structures, it is possible to create a financial statement for each structure. This in itself provides the opportunity to observe the flow of cash between entities.

Getting away from the technicalities, creating a healthy balance between your income generators and expense items is enriching.

Losing this balance brings stress and can cost you a lot in both money and energy.

In saying this, there is plenty of truth in the saying, “adversity can be our greatest teacher.”