Financial Statement

Besides the business plan, the other important document to fill in and be aware of is the financial report. I filled one out yesterday, and noticed it is much like any other credit type application we might encounter when buying a car or financing a home--although the one I worked with was only two pages and relatively straightforward.

Here is what I got out of this report: I often forget all the assets I have--including the property we own adjacent to our homestead as well as furniture, tools, and the like. In addition, I focus on the fact that I am a retired teacher rather than consider that I am still employable as an educational consultant and an online instructor for a university. Both these "jobs" are ongoing and bring money to the table, so to speak, so they are part of my income. In addition, now that we are starting to thaw out, and people are venturing out of their homes to look at possible repairs, Don's phone is ringing and he is taking on home repair jobs that always help bolster our financial stability.

I tend to look at the liabilities column and see the credit card balances still owed and the bottom line for our mortgage and my car. What helps me rebound is the asset column where we have the value of both home and automobile, both of which are still much greater than what we owe. We are working hard to pay down balances of credit cards; hopefully they will be at zero within 18 months, but that responsibility falls on all of us. We have pared down expenses considerably, but there are some things we still feel important: cell phones (both Don and I use our phones for business) and cable (our only big luxury).

What did filling out this financial report do for me? In black and white and very concrete numbers, it gave me a realistic view of our money situation. It is more than just what we owe. It analyzes and gives a bottom line for our personal situation. This is important not only to a future landlord, but also to us-this report gives us a chance to understand what we have and what we still need to do to stay on the plus side.