The Balance Sheet

The balance sheet is one of the financial statements. It provides a powerful snapshot of financial health for a moment in time. A strong balance sheet can be an indicator of a more resilient enterprise and of a company more likely to provide greater investor returns.

Households also have a balance sheet. It includes Assets (what you have: house, car, art etc.) and Liabilities (what you owe: bills, mortgage, loans, credit cards etc.). The difference between these two is your Net Worth.

Balance sheets change over time. For many graduating students liabilities (loans) often outweigh assets. As they are paid down assets become greater than liabilities. Eventually the opportunity exists to make your balance sheet work powerfully for your goals.

There are a couple of ways people often fail to take advantage of a healthy balance sheet. The first hurdle is having the assets sit in cash and missing out on the powerful growth the market offers over time.

The second hurdle is sometimes more difficult to overcome. After building a healthy balance sheet it can be remarkably difficult to allow yourself to enjoy the blessings of your investments. Afterall there is always something to save for and worry about, right?

If you find yourself facing either of these hurdles I’m happy to help. A well developed financial plan (for your business and household) offers peace of mind and freedom to enjoy your hard earned investment income.

I work with a number of entrepreneurs who have the additional complexity of managing the balance sheet of both their businesses and households. An independent voice can help provide assurance you have the right mix of business investment and personal asset growth.

Reach out if you have any questions on anything finance related.

Best,

Chris