Personal Finance is Easy, Really

Personal finance is easy, really. It is not as complicated as

banks want you to think. Let us start with your personal income statement.

It is just your income minus your expenses. If that number is positive,

you are saving money. If it is negative, you are overspending.

Then we have the personal balance sheet. This measures your total net worth

right now. List your assets, like cash and investments, and subtract your

debts, like student loans. Your personal statement of cash flows tracks exactly when

money enters and leaves your pocket. A personal budget is just a plan.