Many times people ask me where to start with the process of financial planning. Today’s show answers that question.

If you were assigned to take over a failing business and you wanted to turn it around, you would begin by answering two questions:

  1. Why does this business exist? (Purpose)
  2. Where is this business at? (Financially and Non-Financially)

You would discuss the purpose and mission of the business and they you would review the financial statements.

In personal financial planning, it’s no different.

We start with our purpose (mission, visions, goals, etc.) and then we figure out where we are. In order to do that, we need financial statements.

In business, we use four financial statements to understand the ins and outs of a company:

  1. Balance Sheet (Statement of Financial Position/Condition)
  2. Income Statement (Statement of Income, Statement of Earnings, Statement of Operations)
  3. Statement of Retained Earnings
  4. Statement of Cash Flows (Cash Flow Statement)

We don’t need all four of those with personal financial planning. We use just two (with supporting schedules as needed).

  1. Statement of Financial Condition
  2. Statement of Cash Flows

In today’s show I try to sell you on the value of building personal financial statements for yourself and teach you how to create them.

Here is a sample Google Spreadsheet I created that you can reference throughout the show. Feel free to modify it for your own needs.

Thank you so much to those of you who have left reviews for the show! I really, really appreciate every one of them!

If you’re willing, please take a moment and leave a review for the show. I read every one. They’re so helpful for the show’s rankings. I’m hoping we can get featured in iTunes and the only way to do that is through reviews and ratings.

I appreciate your help!

New Reviews:

Advanced Financial Information!
by: 림0501 (United States ) *****(5 stars)
Joshua is providing excellent financial information to the masses in a positive way. A great podcast if you are looking to expand your financial knowledge past the basics.


Radical Stuff
by: psheats (United States ) *****(5 stars)
If you want to think outside the financial box, this is the place to get started!


General Review 
by: DCS** (United States ) *****(5 stars)
Great information. I would recommend these podcasts to anybody who is looking for a balanced view of financial matters. The information will help you make your own educated choices in the complex financial world we live in.


A great presentation of lots of info
by: hlouisiana (United States ) *****(5 stars)
I appreciate the variety of information that covers so many situations, some of which I have already used.


by: Hertski (United States ) *****(5 stars)
Great stuff nice to see someone take a practical approach to finance easy to understand and follow and In touch with today’s market


by: ATS1979 (United States ) *****(5 stars)
While there is so much information easily accessible in today´s hyper, tech-savvy world; filtering through the sand to get to the diamonds becomes an increasingly difficult task. Mr. Sheats combines technical expertise with a deep thoughtfulness on common, everyday issues facing those of us who are striving to grow in our stewardship of resources, and responsibilities as citizens, contributors, and beneficiaries of a complex and diverse economic system. So excited to have found this podcast! Let us all be challenged to question the popular financial wisdom, and lifestyle norms.

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