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Many years ago in college Accounting I was introduced to the idea of assets and liabilities. Our professor detailed the importance of why every business needed to account for each on their balance sheet and statement of cash flows. Today we discuss why every household also needs to quantify the assets, liabilities and the cash flow coming and leaving your bank account. Do you monitor this on a monthly basis? If not you could be setting yourself up for financial disaster.
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Happy investing my friends!