The document describes how a personal financial management tool called "The Financial Fence" works using a case study of George and Martha Miaf. It takes the user through calculating their opening equity, income and cash flow, personal capital, investment capital, debt, and closing equity by updating values on balance sheets, income statements, and cash flow statements. It concludes by providing contact information for The Financial Fence tool.

1. HOW THE PERSONAL FENCE WORKS
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11. A CASE STUDY
GEORGE & MARTHA MIAF
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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
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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. 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. 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. 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. 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
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18. Contact us
Email: service@onesherpa.com
www.thefinancialfence.com
www.onesherpa.com
© Copyright The Financial Fence Pty Ltd 2005