MONEY MASTER DOM 1

Through the Eyes of PYC…

The Income Statement

One entrepreneur affirmed, "People should look at themselves as a business". That being said, we know in order for a business to run successfully, it must operate in the "black" opposed to the "red". Are we operating at a profit? Or are we operating at a loss? Honestly assessing income and operating expenses, utilizing The Income Statement, helps to identify "gaps", "loops" and "voids" - the overall discrepancies in what it costs to "operate", while simultaneously exposing "wandering" money and employing it. Rarely do wanderers contribute to the bottom line and often times discourage those who do. Putting it bluntly, "wandering" money gets wasted. It is here we see where we can adjust our expenses and balance our lifestyle to agree with where we desire to be.

The Balance Sheet

Do we own more than we owe? Or do we owe more than we own? Reviewing The Balance Sheet enables us to take an honest look at our assets (what we own) versus our liabilities (what we owe) to determine our own equity, or net worth - an initial step critical to reorganizing and rebuilding finances. Here we discover if we have to pay others more than we have to invest in ourselves.

Owner's Equity

Businesses define owner's equity as the resulting value of assets after all “out-going” liabilities have been paid - the amount left to give to its owners, after everyone else has been taken care of. Owner's equity defines the company's net worth to its investors. Interestingly, though, it does not stop there. This net worth is yet a tool used toward the company's growth. Companies view this equity as a liability - something it is held responsible for paying. A company's balance is dependent on its re-investing in itself, for reasons conducive to its growth. Through the eyes of business, the more it can pay to its owners, the more its owners can invest in it.

The Cash Flow Statement

Corporate America essentially uses The Cash Flow Statement to measure the quarterly cash flows of business. From the perspective of an individual, this statement would be used more frequently. Here, it is used to record how we operate. While the income statement summarizes our categories of expenditures, it is the responsibility of the cash flow statement to populate that summary with our everyday transactions – something like our checkbook registry, but organized with an operative structure.  Project You Can also uses this Financial Statement to bridge its concepts of Money Masterdom 1 & 2.

The Services

We understand the difficulty in finding the blanket ratio for spending and saving, or the “one-size-fits-all” analysis, which is why we advocate customization. Yes…it does take time, but it is very much worth it. We, as individuals are more enthusiastic when we engage in something catered to us. In our first phase of mastering money, PYC tends to concentrate on speaking the language of business. As it is said, “…life and death lies in the power of our tongues”. We must “speak those things…as though they were”. We provide our initial phase of money masterdom services by:

• Presenting and developing customized Financial Statements