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The Four Fundamentals
We take basic accounting principles and use them to build a comprehensive, easy to understand the financial plan.
As your fundamentals change, so will our planning which is why we are obsessive about our communication and meet regularly to stay current.
"What do you own" is a simple way of asking for assets.
Assets make up half of your Net Worth.
Cash, savings, investments, 401(k), IRAs, home, cars, a business, land, rental property, vacation home are all assets.
"What Do You Owe" are the liabilities owed on the assets you own. Liabilitlies make up the second of your Net Worth.
Mortgage, Business Note,Car Loan, Student Debt, Credit Cards, are all liabiliites.
"What do you make" is all of your income sources and makes up half of your Cash Flow statement.
Salary, Wages, Bonus, Social Security, Rental Property, Military Pension, Inheritance, Insurance Proceeds are all common income sources.
"What Do They Take" is all of your expenses and makes up the second half of your Cash Flow.
This can be the most difficult fundamental. Without tracking spending and having accountability, expenses can exceed income and create challenges to meeting planning goals.