We all want to accomplish something wonderful with ourselves. Financially, that is really a struggle for some people, but I tell you that any one can be in control of their finances. Today I have a few suggestions about step

#2. Develop your own cash-flow statement monthly or quarterly and compile them into an annual statement each year.

Cash Flow- Income/Expense Statement

This is a great tool to account for if you are living with in your means. The average American household owes 20% more than they make each year. Newsweek Feb 2008
By tracking your cash-flow you're able to get a good idea about how your journey through life's going to be. Is your income increasing? As it does, do you increase your savings? or your expenses? Are the majority of your expenses necessities or items that could be cut out of your budget with some sacrifice and discipline?

Step #3 Calculate your financial ratios periodically and use them to assess your financial progress.

Financial Ratios Worksheet

Debt Payment -To-Income- Ratio, Debt-To-Asset Ratio, Basic Liquidity Ratio are all very important to ascertaining your financial stability as well. On these notice the recommended ratios... BLR- 3.0 or more DTAR- the further below 1.0 the better, (because 1.0 is insolvent) DPTIR- below .36 is adequate, .36 to .41 is marginal, above .41 is risky.

So as we fill in our personal numbers try to asses where you are.

If you are out of the safe limits, we'll be covering soon- how to reduce your expenses, increase your income, improving your budget and much more to make sure you're Ratios are where they need to be!

Coming next is Steps 4-6! Is this helping any one?