Then subtract your total debts from your total
Then subtract your total debts from your total assets. [...] This is one way to prepare your financial statement sheet. If your income exceeds your expenses, you have a positive cash flow. Knowing where you are financially you can achieve goals withing your specific time frame. This way you can make changes, reevaluate and create a plan to get where you want to be maybe one, two or ten years down the road. You can also do an annual report by keeping track of your monthly report. This will give you your net worth.
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