Cashflow and Compounding

What is a personal financial statement?

The personal financial statement and superannuation

The two sources of cash that require your time are employment and self-employment.

For example, you may decide that property is a viable option for you, or perhaps shares. Both of these options could be achieved either directly, or through an investment vehicle such as superannuation or a managed fund.

Just a quick one on superannuation. Your superannuation profits are required to be re-invested within your superannuation fund, unless you are retired or have access to your superannuation based on another condition of release. This is a forced compounding of returns.

Importantly, there are many factors associated with your superannuation fund that can affect this compounding, and therefore it is important to understand superannuation. (The Superannuation module is the place to learn more making the most of your super.)

More on compounding later in this module.