Jasz
VIP Contributor
When it comes to managing your finances, the most important thing is to have a clear, consistent strategy. If you don't have a basic plan of action for handling your money, you'll spend time feeling flustered and frustrated. You'll be more likely to make poor decisions or just avoid thinking about your finances altogether.
To help you get past that, here are three simple steps that can help you take effective financial stock.
To help you get past that, here are three simple steps that can help you take effective financial stock.
- Review your cash flow: Look at how much money is coming in and going out each month. This helps you see if there's room for improvement in the way you're managing your spending and saving.
- Determine your net worth: Add up all of your assets (your savings account, stocks, home value, etc.) and subtract any debts (student loans, credit card debt, mortgage payments). This will give you an idea of how much wealth you've accumulated so far.
- Look at how much debt you have: While it may not sound great to add up all of your debt, it's necessary to do this so that you know exactly how much money is owed each month. That will help you determine what kind of payment plan will work best for paying down what needs to be paid off sooner.
- Effective Financial Stock could contain the following as well:
- Annual revenue and profit reports for the last several years
- Quarterly reports.
- Monthly reports, which can be broken down by month or by quarter.
- Your budget (if you have one).
- Periodic reports on expenditures and capital investments.
