Jul
26
2019

Three Reasons Every Woman Needs a Personal Financial Statement

If you’re a goal-oriented woman, you understand the importance of setting a goal and creating a strategy to achieve it. But did you know that there is a method to the madness of planning for your financial future? Creating a personal financial statement is the starting line in your race to financial security. If you don’t know what a personal financial statement is or are unsure about whether you need one, these three reasons will help you see the light.

1. To Track Your Progress, You Need a Point of Reference

When embarking on a new venture, in order to keep you on track as well as track your progress, you must have a point of reference. Whether you’re training for a marathon or saving for that big trip, you need to know where you’ve been to see how far you’ve come.

Think of your personal financial statement as this point of reference: it will let you know where you are now, keep you pointed in the right direction and, as time passes, show you how far you’ve traveled. When done correctly, it is a wonderful tool to help you track your family’s finances, plan for future purchases, trips, investments and even retirement.

Plus, the further you go financially, the more important it is to have current financial statements and a bona fide tracking system. Think of it this way: you wouldn’t purchase a car without calculating whether you could make the monthly payments, right? A personal financial statement will help you make decisions just like this, but in all aspects of your financial life! When it comes to the big bucks, without tracking your personal finances things could quickly spin out of control — or worse, you could be making financial decisions that will negatively impact you in a future you have not even yet imagined.

2. Personal Financial Statements Help Answer Important Questions

Personal financial statements are used to answer questions such as:

* Did I make enough income last month to cover my expenses this month?

* Where is my money going?

* What is my biggest expense?

* Where can I reduce personal expenses?

* Where can I increase personal revenue?

* Is my net worth increasing or decreasing?

* Is the debt I’m taking on “good” or “bad”?

Once a personal financial statement is compiled for you, it can be used to plan for your future. Retirement, investments, loans and other financial planning/decisions can be planned for and justified using an accurate financial statement.

3. Building Wealth Takes Planning

It’s a different mindset that people must have, if they want to build wealth. Unlike what many people would like to believe, the wealthy do not simply “stumble” upon financial stability. They keep close and accurate record of their finances and make financial decisions that are based on sound judgment and facts.

Becoming wealthy is achievable — and with the help of a financial professional, you can in many instances even forecast a date when you could achieve financial stability! It is worth the investment; no amount of money you save by doing your taxes yourself will make up for the assets you could build with the help of a true financial specialist.

Understanding that YOU and YOUR personal finances are in essence a business will help you to make decisions that will positively impact your financial future. Just like with a business, your personal finances are trackable. A personal financial statement will help measure your progress and turn your dollars into assets that will keep you making money long into the future.

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