DO YOU ROMANCE WITH YOUR OWN BALANCE SHEET
A financial year has just ended…, ushering a new financial year…What a weird topic no?
We all will have to file tax returns, pay taxes and create budgets and plans for the coming financial year…and yes I am talking about personal finance and not company finance…
In my 20 years of experience in personal finance I have seen, Majority of citizens file their tax returns in time, but rarely focus on his/her balance sheet…Infact I have seen few of CFO’s knowing the company balance sheets inside out, but ignoring their own balance sheets…Do you really know your own balance sheet?
Whereas one needs to Romance his/her balance sheet ….Wondering why?
- Balance sheet is nothing but your report card, on how well or bad you have done in the last financial year…
- Your asset-allocation should be derived thru your balance sheet – your balance sheet should say which assets you need invest in..
- Your Insurance needs – both life and health should be derived from your balance sheet…Remember insurance is a cost and you should have only if you need it…
- The pace of growth of your balance sheet will determine if your asset allocation needs any fine tuning…
- Finally a sound personal balance sheet covers all your assets and liabilities and thus giving you lot’s of confidence and peace of mind.
This week’s Fisdom:
Friends, At Arthashastra we believe that you should romance with your balance-sheet, love it, nurture it and grow it, so that you take charge of your life, financially.