Financial statements reveal the financial position of a person, company, or entity at a specific point in time. Create your own personal financial statements so that you are able to see and understand your current financial position.
According to President Spencer W. Kimball, who should have a budget? Why?
What is the process of creating an effective budget?
What is the main difference between the “Old Way” and the “New Way” of budgeting (see Chart 1 and Chart 2)? Why is this so important to the success of your financial plan?
Calculate your net worth so that you know your financial position. Your net worth tells your whether you actually have in the things you own above and beyond what you owe. If your net worth is negative, then this means you are living on borrowed funds. A good net worth depends on your age, but it should generally increase as you get older and move towards retirement.
