Lesson 3 - Statements and Budgets - Part 2

In order to determine our performance in Financial Planning we have a few useful tools to help us, listed below:

Balance Sheet. Our Balance Sheet will help us to understand our financial position at an exact moment in time. Balance Sheets are usually completed at the end of the year for most.

Income Statement. Our Income Statement will show us our income, expenses and our contributions to savings over the past year. Again this statement is completed at the end of the year and will show information about the past.

Cash Budget. The Cash Budget will try to estimate our income, expenses and contributions to savings for the next year.

These are the three major tools that we will look at to help us in our quest to monitor and determine our performance.