I freakin’ love financial statements! That’s right. I said it: I geek out on finance and love financial statements. You’ll LOVE em’ too! If you need to get organized and focused with money, but don’t know where to start financial statements are where it’s at!
We’ll dive into why I freakin’ love financial statements. First, I wanted to let you know this will be a 4-part financial education series!! This is part one of why I freakin’ love financial statements. There are three financial statements: your Balance Sheet (the best-ever snapshot of where you stand), Statement of Cash Flows, and your Income Statement. Fill them in like. a. boss! The next posts will explain what they are and how they can be your life-saver and stress reliever!
Here’s why I freakin’ love financial statements.
Financial statements are what the pros use.
I get it that financial statements sound intimidating and boring. Financial statements are what the pro’s use though. If you want to be good at running, would you roll out of bed on your race day? Uh, that’s a hard no. You’d want to have a training schedule, measure your distance, and track your progress. You’d use the tools and training that really good runners are already using.
If you want to be good with money, then look at what the Fortune 500 (billion dollar companies!) are using! They use financial statements! I learned ALL about em’ studying Finance.
An impulsive, in-the-moment look on your bank account to see, “Hmm ok, yes I have enough to cover rent right now. Phew,” isn’t working! Checking in on your bank account on the regular is stressful and not helpful. It only shows what’s happening in the moment. There is no big picture, structure, or accountability. Pros use financial statements to have a comprehensive look at finances.
Now-a-days there are a million apps for personal finance or ways to sink your bank accounts. I definitely have used sites like Mint.com and Personal Capital which sync your accounts in an instant. It is awesome.
The quote, “What comes easy won’t last. What lasts won’t come easy,” is oh-so-true.
Getting an instant view of your accounts won’t make lasting changes in demolishing debt, your spending patterns, net worth, and relationship with money.
A side note, if you want to get started filling out your financial statements now, I created a mini-class that is just over an hour and comes with a downloadable sheet for you to fill in your financial statements. PLUS after you fill out your financial statements, you’ll get a 1-hour one-on-one money coaching session with me! Check out the details and get started now. There are only a few spots each month!
Get focus + organization + accountability with financial statements.
Ready to step out of the cycle of living paycheck to paycheck, chaos, and stress? YAAS. If you take the time and energy to fill in your financial statements I guarantee you’ll survive and come out ahead feeling focused and organized for once!
There is soo much power in writing down your plans. Filling in your financial statements is an amazing way to write out your money plans for now, next month, and the future. You can forecast income and expenses, See your investments grow and debts shrink!
One of the biggest issues with managing money is there is no accountability. You say, “You’re going to get out of debt!” Then nothing happens and you are not accountable with your financial dreams. Heck a study shows that people make the same goal TEN times with no success.
In reality having no accountability with money is like an oxymoron. You know those phrases that contradict one another like: awfully nice, known secret, or deafening silence.
Think about this: no accountability with money? That should not exist. ASK AN ACCOUNTANT! Accountants account for all the financial transactions in a company. They use financial statements! If you want to have accountability with your money, then make a commitment to do the damn thing and just fill in your mother f-ing financial statements already! Whew, I get worked up about this money stuff!
- How to Get Focused & Organized with Your Money + Life
- My Favorite Mantra and Mindset with Money
- How I Changed My Budget This Month (Guilt-free!)
Financial statements are a DIY cost-effective way to manage your money!
If you hire a financial advisor you’ll pay between $1,000-$3,000 for a one and done financial plan. Or you’ll get charged a fee for Assets Under Management (AUM) of around 1%. NerdWallet estimates that this can cost a young investor $590,000 over their lifetime. Gulp, that escalated quickly!
The bigger issue is that standard financial advisors specialty is investing and life insurance. Financial statements are freakin’ awesome because it helps you find money to invest, pay for day-to-day expenses, and get out of debt. More importantly, the things in life like doctors visits, trips, fancy pants brunches, and hosting baby showers are ever-changing.
Most importantly, when you learn how to fill in your financial statements, you have a DIY system in place for the rest of your LIFE!
That is why I freakin’ love financial statements and know you’ll love em’ too!