A Balance Sheet and a Money Flow Statement allow you to take a detailed look at your present financial situation and make better calls about the future. With a little work, you can develop these 2 tools and be on the way to a solid plan for your financials.
Balance Sheet A balance sheet is a picture of your private finances at 1 time in time. It contains 2 main elements : what you own ( assets ), and what you owe ( liabilities ). The final target of most stockholders is to extend their net worth. The balance sheet is a particularly helpful tool to spot weaknesses and strengths in your present finances, as well as to figure out your goals for the future. Somebody with an extreme quantity of liabilities might set a goal to get rid of this debt. On the other hand, somebody with a positive net worth ( more assets than liabilities ) might plan to save and invest towards retirement, university, or another goal.
Lately a notable life assurance company together with many of its agents paid a massive fine as it allowed the sale of a life assurance policy camouflaged as a retirement plan.
Life assurance isn't an investment for your benefit. If you extraordinarily care for somebody and wish to protect them, then purchasing a life assurance policy seems sensible.
Notice I did not say term life assurance, minimal cost life assurance, or full life assurance. And you know what?
No-one ever asked me what sort of life insurance policy it was. They were just intensely thankful to get the money.
Term is the least expensive, but it is improbable the death benefit will be paid since the life assurance policy will most likely lapse before you die. At the moment the premium may appear inexpensive compared to other types.
Entire life assurance gives a lifetime level premium till the policy is paid-up. It illustrates what you earn ( income ) and what you spend ( costs ). After listing all you earn and everything you spend, you can figure out your net money flow by simply taking away costs from cash.
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