Personal Financial Cashflow Statements

Financial Statement Spreadsheet for 2012

2012-02-01T08:27:00.000-08:00

I just recently have updated my Financial Statement Spreadsheet for 2012. Feel free to download it from http://gfullmer.atwebpages.com/FS2012.xls. I have used it for the last 11 years, with mods, and it has been very helpful in getting me out of the rat race (Passive income > expenses).When you first load it with Excel (it has been tested with 2003 and 2007 Excel) it will ask for the FS2011 file from last year. If you didn't use last year's version ignore the message, but if you did, make sure it is in the same directory.

Purpose: The purpose of this Financial Spreadsheet is to provide an individual the means to budget and track one's financial condition on one page. Unfortunately some of the better personal financial packages (Money, Quicken) do not allow the kind of Financial Statement that provides a snapshot of the cashflow and tracking of it from month to month, and way to track financial indicators beside net worth. This provides a Rich Dad (www.richdad.com) compatible view. However, most of the financial software packages don't define assets and liabilities like Kiyosaki does. That is assets put money in your pocket and liabilities take money out of your pocket. This spreadsheet uses those definitions.

First go to the instructions page. Any feedback or enhancement suggestions would be appreciate. The sheets (tabs) that need to be filled out first are the DefaultBudget and then the BudgetDetail. Once that is done you just need to fill out the MonDetail sheet for each month. You need not even to touch the Mon sheet (unless you want to change the budget for that month only), but it will give you a one page summary of that month. I usually look at the graphs page and the Totals page to get a feel for how my budget/actual story is going.

May you have a happy and most prosperou$ New Year,
Glen

Where are you now, financially?

2008-06-10T07:58:00.000-07:00

Click on the above picture to see an example. It is very important to your financial well being to know where you are now. You do that with a financial statement. Please look at this example and note the following definitions for some of the fields:

%kept - % of money kept after expenses

%of Net Worth Liquid - % of Net Worth easily convertible to cash

%money working - % of money invested

Debt to Income - monthly debt expense to income ratio in %

%inc to taxes - % of income used for taxes

RD Wealth Factor - times passive income can cover expenses

%On Housing - % of income used for housing exp

Return on assets - passive monthly return annualized

%DoDads - % of net worth not income producing

Wealth in years - number of years you can live on assets

Assets - items that provide positive cashflow

Liabilities - items that provide negative cashflow

I would suggest that you fill out three monthly financial pages.

your current financial statement
a budget of where you want to be in one year
a budget of where you want to be in 5 years

The name of the game is to get out of what Kiyosaki calls the "rat race". That is to have your passive and portfolio income greater than your expenses. If you do that the RD Wealth factor will be over 1.

I have a spreadsheet that will do this, but as you can tell it is very simple to come up with one of your own so you don't have to use mine but just get it done.

Hope this helps,
Glen

First Post

2008-06-08T04:58:00.000-07:00

I am a follower of Robert Kiyosaki's philosophy when it comes to finances. I will be working from that prospective and you can find out more about that at Rich Dad (www.richdad.com). I have no connection, or receive any compensation from his company nor do I work for it or him. His and his wife's (www.richwoman.com) philosophy have changed my financial life and I wanted to give back to the community as a way of thanking him. Some of his philosophy includes:

1. The rich don't work for money.

They work to build/buy assets so that money works for them instead.

RK's definition - Assets put money in your pocket. Liabilities take money out.

Buy your dodads with cash flow from your assets.

Wealth is measured in time and not in money - he got that from Bucky Fuller.

Depending on a job for financial stability in this day and age is risky.

2. Financial literacy is important.

A financial statement is as important for a person as it is for a business.

The cash flow pattern in a financial statement of the rich, middle-class, and poor differ and are very recognizable.

The three piggy banks - "I Invest", "I Save" and "I Give".

It is not how much money you make but how much money you keep.

The rich buy assets, the middle-class and poor acquire liabilities.

The cash flow of an asset and the cash flow of a liability differ.

A financial statement tells a story.

Money doesn't solve money problems.

Your house is not an asset but your mortgage company's asset.

3. Mind your own business.

One way to acquire assets is to build a business.

He defines a "business" as one you can walk away from for a year and come back and having it working as well or better.

A business is a system and leverages other people's time.

Your profession is different than your business.

Most of the rich made their money in business or real estate.

4. The History and Power of the Corporation.

There are tax advantages to incorporate.

There are legal liability advantages in incorporation.

5. The rich invent money.

Money is an idea.

An example: building a company and taking it public.

Another example: Buying 200 acres, dividing it into 4 parcels and selling 3 to pay for the original 200 acres.

6. Work to learn - don't work for money.

Pick those jobs where the knowledge you gain can be used in a business you start.

Most people need only a couple of additional skills to be great.

Get to know a little about a lot.

Learning is more important than security.

For a business sales and leadership are very important.

With these concepts in mind my intention is to create a place where we can work together to create and help each other create a personal financial cashflow statement on the road to financial freedom, that is being secure, comfortable and rich.