Keep Track of All Your Cash, in 50 Words or Less

Finance Like an Adult

Remember, simple solutions are your best option to solve complex problems. Your personal finances are incredibly complex, but a basic understanding of the big picture can provide you with the path to an intentional life. The first portion of the big picture that you must capture relates to your income.

Simplify: Cash In versus Cash Out

At its simplest, your personal income statement comes down to cash in (income) and cash out (expenses). You can break income into two factors: active income earned through your full-time job or ownership, and passive income earned from various investments, content creations, etc.

Takeaway: In 50 Words or Less

Your personal income statement is simply cash in and out. You need to understand how often and how much cash comes in from your active and passive sources. Create a system to deposit all of your cash into a bank account and then review your statements for accuracy.

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Matt McDonough

Matt McDonough

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Hello! I am a CPA by day, writer by night, and adventurer on the weekends. I’m on the lookout for fun ideas to read, please send anything interesting my way!