How To Answer Personal Finance’s Most Important Question

Start by building your own scoreboard

“You are what your record says you are”

Former NFL Head Coach Bill Parcels

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Bring Your Personal Finances To A Corporate Level

Simple solutions are the best option to solve complex problems. It is easy for Bill Parcels to recognize his record in the NFL, but not so much with your personal finances.

However, corporations are constantly reviewing their record, aka financial metrics, throughout the year. The key to applying this corporate habit to your personal finances is compiling information automatically and choosing straightforward metrics to review.

For example, I summarize my finances with a personal income statement to upgrade my finances to a corporate level.

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What Should You Measure?

The correct answer is, it depends. So many personal financial metrics are available that it makes sense to limit what you will keep track of. Therefore, you must assess your personal…