Personal Balance Sheet and Cash Flow Statements for Effective Budgeting and Retirement Planning

Budgeting Worksheet Narration
The personal balance sheet is one of the types of personal financial statements where I learned
that it offers an entire screenshot of my wealth for a particular time period (Pavlović, Miloš, and
Jovan 129-147). It acts as a summary of my assets and the liabilities I have along with
determining my net worth also. With the personal balance sheet, the cash flow statements were
also quite helpful for me as it helped me in presenting the cash inflow and outflows of my wealth
for a specific period of time. It was equally and significantly important as the personal balance
sheet was for analyzing the cash flows (Reid, Walter, and Myddelton 16). The cash flow
statements provide me with the information regarding my cash payments, cash receipts and the
total change in the cash arising from my investments and financial activities during all this time.
I also get to learn that the budgeting process was a lot helpful for me to forecast my expenditures
and my incomes and also helped me to make the decision for the same. It also acts as a means to
control and handle my financial performance as it was the process by which I was able to
develop my budget according to my income and expenses (Hope 71). I get to know that an
effective process of budgeting involves that individual who is held accountable for sticking to the
budget and hence implement it so as to create a budget for future. A good process of budgeting
includes initiatives for strategic planning and also facilitates that the income will be budgeted
before the expenditures. It has also helped me to obtain an ability to have continuous
improvement and further anticipate the problems by improving my focus and clarity regarding
budgets. Along with this it also provides me great confidence to take the decisions on budgeting
in an effective and proficient way.
This task has helped me to become an effective money manager as after performing this task I
am now able to build budgets, save, invest, spend and make use of my capital in a very effective
and profitable manner (Bierman , Harold, and Seymour ,2012). Now after being a good money
manager rather than myself, I am now capable of helping others too, in taking decisions
regarding mutual funds, the pool of funds or pension plans.
Retirement Worksheet Narration
The very first step in my retirement planning process was to determine my goals for the plan.
Taking into consideration all my financial aspects and studying the market there. My goal is to
be a moderate investor where I want a balance in both risk and return and is aiming to get the