Net worth forecast guidance
Dec 18, 2020 | 09:00 am
Balance sheets (and all other financial statements for that matter) can be used for forecasting. If your forecasted net worth steadily increases—congratulations, you’re heading in the right direction! If the forecasts show declines—you’ve got a serious problem. In such cases you need to reconsider your debt balances and your asset choices. You should also take a closer look at your budget (discussed later) and ensure you are living within your means.
But how can you create the forecasts in the first place?
This is the subject of a recent article I added to the website's content. It may be found here.