STEP 4 - Your bottom line figure

Financial Management 101 Financial management principles
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Transcript

By following through the exercises of the previous lessons, you have actually shaped up your personal finance compass. I'm really excited for you. It is now time for you to meet the benefits of this hard work that you've done with courage facing the truth, because visibility is power, being proactive by looking at your invisible costs on top of your monthly expenses and balancing with your revenues. So now, the finance compass will be able to give you your bottom line figure. This bottom line figure is the amount of money that you can securely save and put aside on a monthly basis. The finance companies will also start making assumptions on how much money you will actually accumulate.

If you were to save this consistently over a period of time. We will show you this as well. Now, is this number positive or negative if it's positive Congratulations, you're in a good face. If it's negative, you only have two options. You can either reduce your expenses, or increase your revenue. And I'm sure you knew that already.

So I appreciate that this might not be the solution for you. In this training, I cannot give you the solution. But if you look into your expenses, there may be clues. If you have been doing a thorough work on categorizing your expenses, I encourage you to reconsider those, look into them again, and benchmark yourself. Question yourself, challenge yourself even and ask yourself if you're really spending as much as much as you should, on all those categories. If really, you stretched out and you're you're minimizing how much you spent.

Your solution is to look at how much you can gain more revenue. And I'm sure that there is a lot of help including you and me, on how you can make this So, now let's go into the last piece of your finance compass and discover your bottom line figure together. Let's go

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