Wealth growth opportunities are difficult to observe using traditional financial statements. In this case study, an analysis using a wealth-sensitive balance sheet and income-expense statement is presented to help identify corrective adjustments that promote wealth growth. Adjustments involve the application of straightforward financial practices such as paying off debt, living within means, saving and investing 10% of earned income, re-investing all investment income, and converting excessive depreciating assets into wealth producing assets. The analysis also includes an estimate of the direction and magnitude of wealth growth change that is likely to occur from taking a set of proposed corrective adjustments.

Download Journal

Comments are closed.