Determining Your Financial Position

In order to live within your means, you must have a precise understanding of your financial assets, liabilities, and net worth, by preparing a Statement of Financial Position

You also need to know—and to track on a regular basis—where all your personal funds are coming from and going to: This is your Statement of Cash Flow

Just like with a treasure map before you can get to your buried treasure you have to know where your starting point is. Preparing these two essential financial statements will be the starting point of your journey to achieving Financial Independence, Point X.

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