How The Personal Fence Works

698 views

Published on

This shows you how to use The Financial Fence for your personal finances

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
698
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
47
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

How The Personal Fence Works

  1. 1. HOW THE PERSONAL FENCE WORKS © Copyright The Financial Fence Pty Ltd 2005
  2. 2. © Copyright The Financial Fence Pty Ltd 2005
  3. 3. © Copyright The Financial Fence Pty Ltd 2005
  4. 4. © Copyright The Financial Fence Pty Ltd 2005
  5. 5. © Copyright The Financial Fence Pty Ltd 2005
  6. 6. © Copyright The Financial Fence Pty Ltd 2005
  7. 7. © Copyright The Financial Fence Pty Ltd 2005
  8. 8. © Copyright The Financial Fence Pty Ltd 2005
  9. 9. © Copyright The Financial Fence Pty Ltd 2005
  10. 10. © Copyright The Financial Fence Pty Ltd 2005
  11. 11. A CASE STUDY GEORGE & MARTHA MIAF © Copyright The Financial Fence Pty Ltd 2005
  12. 12. George and Martha Miaf Example Calculate the Opening Equity BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 $5,500 $5,000 DEBT DEBT $111,500 EQUITY EQUITY PERSONAL CAPITAL $316,000 plus INVESTMENT CAPITAL $63,000 EQUALS $267,500 DEBT $111,500 plus EQUITY $267,500 Fence Pty Ltd 2005 © Copyright The Financial
  13. 13. George and Martha Miaf Example Calculate the Income and Cash Flow BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 $9,380 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 -$9,380 $5,500 $5,000 $4,120 DEBT DEBT $111,500 EQUITY EQUITY $267,500 © Copyright The Financial Fence Pty Ltd 2005
  14. 14. George and Martha Miaf Example Calculate Personal Capital BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 $319,500 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 $9,380 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 -$9,380 $5,500 $5,000 $4,120 DEBT DEBT $111,500 + EQUITY EQUITY $267,500 © Copyright The Financial Fence Pty Ltd 2005
  15. 15. George and Martha Miaf Example Calculate Investment Capital BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 $319,500 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 $9,380 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 $73,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 -$9,380 $5,500 $5,000 $4,120 DEBT DEBT $111,500 + EQUITY EQUITY $267,500 © Copyright The Financial Fence Pty Ltd 2005
  16. 16. George and Martha Miaf Example Calculate the Debt BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 $319,500 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 $9,380 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 $73,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 -$9,380 $5,500 $5,000 $4,120 DEBT DEBT $111,500 $115,620 EQUITY EQUITY $267,500 © Copyright The Financial Fence Pty Ltd 2005
  17. 17. George and Martha Miaf Example Calculate the Closing Equity BALANCE SHEET BALANCE SHEET “AS AT” “AS AT” THE FINANCIAL FENCE ® PERSONAL PERSONAL NET INCOME STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $316,000 $319,500 PERSONAL INVESTMENT EXPENSES INTEREST REVAL/DEVAL REVAL/DEVAL NET INCOME INCOME PERSONAL CAP INVESTMENT CAP INCOME $51,000 $180 -$37,000 -$7,800 -$2,000 $5,000 $9,380 INVESTMENT INVESTMENT CASH FLOW STATEMENT CAPITAL CAPITAL “FOR THE PERIOD” $63,000 $73,000 REVAL/DEVAL REVAL/DEVAL NET INCOME CHANGE IN CHANGE IN NET CASH FLOW PERSONAL CAPITAL INVESTMENT CAPITAL PERSONAL CAP INVESTMENT CAP +/- to Debt +/- to Debt -$2,000 $5,000 -$9,380 $5,500 $5,000 $4,120 DEBT DEBT $111,500 $115,620 EQUITY EQUITY CONTROL CHECKS 1. TOTAL CAPITAL = DEBT + EQUITY $267,500 $276,880 2. OPENING EQUITY + NET INCOME = CLOSING EQUITY 3. OPENING DEBT + NET CASH© Copyright= CLOSING DEBT2005 FLOW The Financial Fence Pty Ltd
  18. 18. Contact us Email: service@onesherpa.com www.thefinancialfence.com www.onesherpa.com © Copyright The Financial Fence Pty Ltd 2005

×