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An Introduction to the Cash Flow Statement: The One-Page Document That Shows Whether You Will be Rich or Poor in the Long Run RPF0026

Radical Personal Finance

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The Biggest Mistake People Make When Creating Capital Statements

The biggest mistake that i see people make, is that they're often trying to create these with net income. Total inflows should be your gross income prior to any taxes, prior to any deductions whatsoever. If you have a two salary earning household, put one salary. H kno, the other salary, if you have one person owns a business and one person has a job, then you would go ahead and schedule that out separately so you can reach the number of your total inflows.

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