Peering Into Your True Financial Situation Through the Use of the Financial Statement

When we examine our financial situation it’s like peering through the keyhole in a door, but when we take a true look at our financial statement the true becomes evident you are either in good shape or in terrible shape I an economy like this. It is never both and it is never in-between. Ether good or bad take your choice. Are you poor/ middle class or are you upper class/rich. So the true question becomes are you in the 90% of people or are you in the 10% of people? Which is the true question and it cannot be truly answered fully until you know the extent of your financial situation though reading the financial statement. Though read it you get a clear message on what the person has been doing in their life, and what the person ahs been spending their money on. Which can be called expenses (I cover expenses as well as assets and liabilities in their own articles). So then what is a financial statement? The financial statement decides what the bank wants to give you. If you have too many liabilities then the bank will give you a credit card if you have too many assets then the bank will offer you financing no your investments. A financial statement is just a sheet used to cover your finances it covers your income which links to your assets in the balance sheet and your expenses which links to your liabilities in your balance sheet.

The rich see financial statements that will determine how well your doing and if your REALLY rich. Also there are financial statements for almost everything that requires money like businesses and investments have financial statements and with them you can determine how well they handle the game of money. If you have ever been around financially good people and been around Robert Kiyosaki then chances are that you’ve heard of the 90/10 rule that I have been stating indirectly for some time now. I love that rule it’s so easy to us and it goes earthier way10/90 or90/10 and it’s so true it states that the rich are the ten percent it say that 10% of the people make 90% of the money and vice versa 90% of the people (the middle class and poor) make 10% of the money. Hopefully that will give you your ;little dose of green for the rich see in green defiantly and so do the middle class they just see it walk away more often. The funny (but true) thing is that it’s not about how much money you make its about how much money you keep!!! That is way the middle class are stuck in “The Endless Cycle”. Because they think just because people have beautiful toys and big houses and a big pay check they are rich I call that the kiddy mindset. Which means just that people that think that way think very kiddy like. (I talk about the kiddy mindset in another article.).

So whenever you hear somebody saying that a person that has a big house and big beautiful cars are rich, you tell them that they have a very kiddy mindset, or you can just ask them if they bought a big house and the best cars would they be rich? The answer is most likely to be no. That should change your out look on things a little. The only way you can tell if someone is truly rich is if you looked at their financial statement. That is the ONLY way to truly know. Even if thy have millions of dollars look at there financial statement and see if they have lots of assets. If not then they can’t be too rich. I emphasize looking at the financial statements of people to see if they are truly rich for it’ll answer the questions to see if a person is rich first hand. To see if a person is really truly rich they have to answer yes to a few questions. these questions a person has to answer yes to are: Do you have a net worth of over 1 million dollars? Do you have more assets then liabilities (do your assets cover you liabilities)? Do you have a good extent of financial education? Do you keep 40% or more of your total income? Do you feel rich? Are you a millionaire or a billionaire? You don’t HAVE to work for your money right? Does your money work for you and if not could you stop working and be truly more than set for life? If the answer to ALL these questions are yes then you are in the 10% of the rich people. If the answer to any of these questions are no then you are not rich but if the answer to some not all are yes then you are getting there.

Now do you see why a financial statement is so important? With a financial statement you can look into a person’s financial situation and answer almost all of these questions. So when you learn to read a financial statement then you become one step closer to becoming rich. If you are already rich then It is a plus to be able to read a financial statement. If you have answered most of these questions as a yes then you are darn near rich, but a truly rich person must answer yes to all of these questions. When you do you are truly rich.