11 Cashflow and Compounding
What is a personal financial statement?
A personal financial statement is used to record your current cashflow position, your current sources of cashflow, and enables you to set associated goals for the future.
By assessing your current cashflow position, the sources of cashflow, and by making projections, you increase the likelihood that you will take proactive measures.
To the right is a concept diagram of a personal financial statement.
Take a moment to look at the different components of your personal financial statement.