Investment involves multiple instruments to increase ones net worth; however, one in particular is stock or securities. Stock is the purchase of ownership in a business. Businesses generate start up and capital gain through selling shares in the form of stock to investors. As we learned before, the business is selling ownership in the company. The issue is that a stock is only as valuable as the company's financial position. If the company has a strong financial position then the stock is valuable, but if the company has a weak financial position, then the stock is weak. If the stock is weak, this increases the investor's risk and potential to lose their investments. To minimize risk, the GPS Intelligent Investor has to analyze the financial health of the business in which they seek ownership. While investing in a weak company does not carry financial liability, it does jeopardize the investment. Remember stocks are not insured, so the investor can lose their investment. So the Intelligent Investor wants to minimize risk through analyzing the business financial health through its financial statements.
The balance sheet gives the potential investor the company's financial position in a given period, a snap shot in time. It allows the investor to understand what the company's assets - liabilities + owners' equity equals within a particular period of time. The income statement also allows the investor to understand the revenue flow over a period of time. The balance sheet is looking at one point in time; the income statement is looking at the financial activity over a period of time. It matches the revenues and the expenses. The statement of retained earnings or the amount of income a business has available to reinvest in business or to pay dividends is beginning retained earnings plus net income minus dividends which equals ending retained earnings. The final statement is the statement of cash flow that shows how money flows in and out of the business and how much the business has available to service its operations.
The most important aspect of financial analysis is being able to understand the financial statements. Financial statements are the medium by which a company discloses information concerning its financial performance. This exercise, also known as quantitative analysis, looks at the revenues, expenses, assets, liabilities, and all other financial aspects of the company. Investors who perform analysis use the quantitative information they learn from the financial statements to make more informed investment decisions that help minimize risk. The massive amount of numbers in a company's financial statements can be bewildering and intimidating to many investors. On the other hand, if you know how to analyze them, the financial statements are a gold mine of information.
Avoiding Road Blocks
How do you feel about math and numbers?
GPS Financial Statement Review
The Major Statements
The Balance Sheet
The balance sheet represents a record of a company's assets, liabilities, and equity at a particular point in time. The balance sheet is named by the fact that a business financial structure balances in the following manner:
Assets = Liabilities + Shareholders' Equity
Assets represent the resources that the business owns or controls at a given point in time, including cash, inventory, machinery and buildings. The other side of the equation (liabilities) represents the total value of the debt the company has acquired to get those assets. Liabilities represent debt, money that the company owes and must pay back. Equity, on the other hand, represents the total value of money that the owners have contributed to the business (in a public company, this contribution is made through the sale of stock/ownership shares). This also includes retained earnings, which is the money/profit made in previous years.
The Income Statement
While the balance sheet takes a snapshot approach in examining a business, the income statement measures a company's performance over a specific time frame. It is possible to have a balance sheet for a month or even a day; however, most public company's report quarterly or annually, though sometimes some may report monthly.
The income statement presents information about revenues, expenses, and profit that was generated from the business operations (activities that involve the manufacturing and selling of products) for that period. It also contains the numbers most often discussed when a company announces its results - numbers such as revenue, earnings, and earnings per share. Basically, the income statement shows how much money the company generated (revenue), how much it spent (expenses), and the difference between the two (profit) over a certain time period. The income statement lets investors know how well the company's business is performing and whether or not the company is making money. Those companies with low expenses compared to revenue - or high profits compared to revenue - send a powerful signal to investors that investing in this company will be profitable.
Statement of Cash Flows
The statement of cash flows represents a record of a business' cash inflows and outflows over a period of time. Typically, a statement of cash flows focuses on the following cash-related activities (statement is separated into these three sections):
Operating Cash Flow (OCF)
Cash generated from day-to-day business operations
Cash from Investing (CFI)
Cash used for investing in assets, as well as the proceeds from the sale of other businesses, equipment, or long-term assets
Cash from Financing (CFF)
Cash paid or received from the issuance and borrowing of funds
The cash flow statement is important because it is very difficult for a business to manipulate its cash situation. There is plenty that aggressive accountants can do to manipulate earnings, but it's tough to fake cash in the bank. Because of the nature of the cash flow statement, investors use the cash flow statement as a more conservative measure of a company's performance.
Cash Flows from Operating Activities
Investors tend to prefer companies that produce a net positive cash flow from operating activities. Net positive cash flow is the cash that comes from sales of the company's goods and services minus the amount of cash needed to make and sell those goods and services. High growth companies, such as technology firms, tend to show negative cash flow from operations in their formative years. However, changes in cash flow from operations typically give you a preview of changes in net future income. It's typically a good sign when the income goes up. The Intelligent Investor should watch out for a widening gap between a company's reported earnings and its cash flow from operating activities. If net income is much higher than cash flow, the company may be speeding or slowing its accounting of income or costs.
Cash Flows from Investing Activities
This section reflects the amount of cash the company spends on capital expenditures, such as new equipment or anything else that is needed to keep the business going. It also includes acquisitions of other businesses and monetary investments, such as money market funds. You want to see a company re-invest capital in its business by at least the rate of depreciation expenses each year. If it doesn't re-invest, it might show artificially high cash inflows in the current year, which may not be sustainable.
Cash Flow from Financing Activities
The cash flow associated with outside financing activities is typified by this section. Common sources of cash inflow would be cash raised by selling stocks and bonds or by bank borrowings. But also, paying back a bank loan, dividend payments, and common stock repurchases would show up as a use of cash flow.
Cash Flow Statement Considerations
Savvy investors are attracted to companies that produce plenty of free cash flow (FCF). Free cash flow is the cash available for distribution to all the shareholders; cash produced by a company from its operations minus the capital expenditures. Free cash flow signals a company's ability to pay debt, pay dividends, buy back stock, and facilitate the growth of business. Free cash flow, which is essentially the excess cash produced by the company, can be returned to shareholders or invested in new growth opportunities without hurting the existing operations. The most common method of calculating free cash flow is:
Net Income
+ Amortization/Depreciation
- Changes in Working Capital
- Capital Expenditures
_______________________
= Free Cash Flow
Ideally, investors would like to see that the company can pay for future growth investments out of operations, without having to rely on outside financing to do so. A company's ability to pay for its own operations and growth signals to investors that it has very strong fundamentals.
10-K and 10-Q
Now that you have an understanding of what the three financial statements represent, let's discuss where you can go about finding them. In the United States, the Securities And Exchange Commission (SEC) requires all publicly traded companies to submit periodic filings that details their financial activities, including the financial statements mentioned above. Called the annual 10-K and quarterly 10-Q filings, these reports are released by the company's management and can be found on the internet or in physical form. Other pieces of information that are also required are an auditor's report, management discussion and analysis (MD&A), and a detailed description of the company's operations and prospects for the upcoming year.
The 10-K is an annual filing that discloses a business' performance over the past fiscal year. In addition to finding a business' financial statements for the most recent year, investors also have access to the business' historical financial measures, along with information detailing the operations of the business. This includes a lot of information, such as the number of employees, biographies of upper management, risks, future plans for growth, etc. Businesses also release their annual report, which some people also refer to as the 10-K. The annual report is essentially the 10-K released in a fancier marketing format. It includes much of the same information, but not all, that you can find in the 10-K. The 10-K really is boring - it's just pages and pages of numbers, text, and legalese. But just because it's boring does not mean that it isn't useful. There is a lot of good information in a 10-K, and it is required reading for any serious investor. You can think of the 10-Q filing as a smaller version of a 10-K. It reports the company's performance after each fiscal quarter. Each year three 10-Q filings are released - one for each of the first three quarters. (Note: A 10-Q for the fourth quarter is not completed, because the 10-K filing is released during that time). Unlike the 10-K filing, 10-Q filings are not required to be audited. If you have trouble remembering which report is which: think "Q" for quarter.
What is the difference between the 10-K and the 10-Q reports?
GPS Lookouts: Things the Intelligent Investor Must Look For
On the Income Statement:
Revenue as an investor signal
Revenue, also commonly known as sales, is the most straightforward part of the income statement. Often, there is just one number that represents all the money a company brought in during a specific time period. Large companies sometimes break down revenue by business segment or geography.
The best revenues are those that continue year in and year out. Temporary increases, such as those that might result from a short-term promotion, are less valuable and should garner a lower price-to-earnings multiple for a company.
The best way for a company to improve profitability is by increasing sales revenue. For instance, Starbucks Coffee has aggressive long-term sales growth goals that include a distribution system of 20,000 stores worldwide. Consistent sales growth has been a strong driver of Starbucks' profitability.
You can gain valuable insights about a company by examining its income statement for increasing sales which offer the first sign of strong fundamentals.
When a company has a high profit margin, it usually means that it also has one or more advantages over its competition. Companies with high net profit margins have a bigger cushion to protect themselves during the hard times. Companies with low profit margins can get wiped out in a downturn. Companies with profit margins reflecting competitive advantages are able to improve their market share during the hard times - leaving them even better positioned when things improve again.
Rising margins indicate increasing efficiency and profitability. It's also a good idea to determine whether the company is performing in line with industry peers and competitors. Look for significant changes in revenues, costs of goods sold, and SG&A to get a sense of the company's profit fundamentals.
On the Balance Sheet:
Company's Health Diagnosis
The balance sheet, also known as the statement of financial condition, offers a snapshot of a company's health. It tells you how much a company owns (its assets), and how much it owes (its liabilities). The balance sheet tells investors a lot about a company's fundamentals: how much debt the company has, how much it needs to collect from customers (and how fast it does so), how much cash and equivalents it possesses, and what kind of funds the company has generated over time.
The Main Three
Assets, liability and equity are the three main components of the balance sheet. Carefully analyzed, they can tell investors a lot about a company's fundamentals.
Assets
As mentioned earlier, there are two main types of assets: current assets and non-current assets. Current assets are likely to be used up or converted into cash within one business cycle - usually 12 months. Three very important current asset items found on the balance sheet are: cash, inventories, and accounts receivables.
Investors are more often attracted to companies with plenty of cash on their balance sheets. Why? Because cash offers protection against tough times, and it also gives companies more options for future growth. Growing cash reserves often signal strong company performance. Growing cash reserves means that cash is accumulating so quickly that management doesn't have time to figure out how to make use of it.
A dwindling cash pile could be a sign of trouble. On the other hand, if loads of cash tend to be a permanent feature of the company's balance sheet, investors need to ask why the money is not being put to use. Cash could be there because management has run out of investment opportunities or is too short-sighted to know what to do with the money.
Inventories are finished products that haven't yet sold. As an investor, you want to know if a company has too much money tied up in its inventory. Companies with a large inventory have limited funds available to invest. To generate the cash to pay bills and return a profit, they must sell the merchandise they have purchased from suppliers. Inventory turnover (cost of goods sold divided by average inventory) measures how quickly the company is moving merchandise through the warehouse to customers. If inventory grows faster than sales, it is almost always a sign of deteriorating fundamentals.
Receivables are outstanding (uncollected) bills. Analyzing the speed at which a company collects what it's owed can tell you a lot about its financial efficiency. If a company's collection period is growing longer, it could mean problems ahead. The company may be letting customers stretch their credit in order to recognize greater top-line sales and that can spell trouble later on, especially if customers face a cash crunch. Getting money right away is preferable to waiting for it - what is owed may never get paid. The quicker a company gets its customers to make payments, the sooner it has cash to pay for salaries, merchandise, equipment, loans, and best of all, dividends and growth opportunities.
Non-current assets are defined as anything not classified as a current asset. This includes items that are fixed assets, such as property, plant and equipment (PP&E). Investors need not pay too much attention to fixed assets, unless the company is in financial distress and is liquidating assets. Since companies are often unable to sell their fixed assets within any reasonable amount of time, they are carried on the balance sheet at cost regardless of their actual value. As a result, it's possible for companies to inflate this number, leaving investors with questionable and hard-to-compare asset figures.
Liabilities
Just like assets, liabilities can be current and non-current. Current liabilities are debts the company must pay within a year, such as payments owing to suppliers. Non-current liabilities, however, represent what the company owes in a year or more. Typically, non-current liabilities represent bank and bondholder debt.
An Intelligent Investor usually wants to see a manageable amount of debt. When debt levels are falling, that's a good sign. Generally speaking, if a company has more assets than liabilities, then it's in decent condition. However, a company with a large amount of liabilities, compared to assets, needs to be examined with more diligence. Having too much debt, particularly in the form of interest and debt repayments, compared to cash flows is one way a company can go bankrupt.
Here is a quick ratio an investor should use. Subtract inventory from current assets and then divide by current liabilities. If the ratio is 1 or higher, it says that the company has enough cash and liquid assets to cover its short-term debt obligations.
Quick Ratio = Current Assets -
Inventories / Current Liabilities
Equity
As we learned earlier, equity represents what shareholders own, so it's often called shareholders' equity. As described below, equity is equal to total assets minus total liabilities.
Equity = Total Assets - Total Liabilities
There are two important items in equity:
Paid-in capital - the money that shareholders paid for their shares when the stock was first offered to the public.
Retained earnings - represents how much money the company received when it sold its shares.
In other words, retained earnings are the total sum of money that the company chose to reinvest in the business rather than pay to its shareholders. The Intelligent Investor should look closely at how a company uses retained earnings and the ROI a company generates from it.
The GPS Intelligent Investor Treasure Chest
I know it has been quite a bit of information to grasp, but think of it this way, our ignorance is what holds us captive in financial bondage. The more we learn about our finances, the higher the probability that we will be liberated from our financial bondage.
I am about to give you some tools that will assist you in determining the value of one company over another company through ratios. These ratios are very simple to use but will assist you in making a more informed decision about your investment. While this form of analysis may be foreign or new to you, just know it is very simple to perform now as long as you know where to go and get the information. You have learned about what is on a balance sheet, income statement, retained earnings, and statement of cash flow.
Now all you have to do is plug and chug and make the best decision. These ratios will help you take the most relevant numbers from the financial statements, put them in a formula, and then the formula will give you the particular data needed to perform your analysis of choice.
Simply comparing financial statements among companies can be a difficult task and misleading. Two types of analysis of financial statements can be performed.
Vertical analysis - compares individual line items, such as expenses to a common factor, such as sales. By calculating each item as a percentage of the base amount, then comparing the percentages over time or across firms, the intelligent investor can spot abnormalities.
Horizontal analysis - shows trends from period to period for an entire statement. It establishes a base year and shows incremental changes in each line of the income statement and balance sheet by each period.
However, ratio analysis is an extremely important tool for detecting specific operating results, management policies, and details of financial condition. Ratio analysis is generally divided into three types:
liquidity ratios - which report the short-term financial position of a firm
operating performance ratios - which show how well a firm has performed over a period of time
financial strength ratios - which provide insight into a firm's long-term capitalization.
Bankers and creditors primarily use liquidity ratios. Investors and suppliers are usually interested in operating performance ratios. The capital market keeps its eye fixed on the financial strength ratios.
What are the three types of analysis an investor can use to compare the performance of companies?
01.
02.
03.
In actuality, financial analysis is more than just numbers or ratios, but a savvy investor uses the numbers to get insight into the company's strategy and operating environment in an attempt to determine why the numbers may have changed. In MBA school, specifically cost accounting, you study what is called the balanced scorecard. The scorecard allows analysis to include non-quantitative factors in determining the profitability potential of a business or the business results.
Let's examine the usages of financial ratios because these can be utilized to evaluate financial statements. The Intelligent Investor simply has to input the appropriate numbers in the relevant formula and get the numbers or ratio you need to make an intelligent investment decision.
Profitability Ratios
Ratio
Abbrev.
Method of Computation
Significance
Profit Margin Ratio (Return on Sales)
ROS
Net Income / Net Sales
The ability to turn sales into profits
Gross Margin
GM
Gross Margin / Net Sales
Compares costs of goods sold to sales
Return on Assets
ROA
Net Income / Average Assets
Measures the earning power of assets
Return on Equity
ROE
Net Income / Average Owner's Equity
The earning power of owners' equity
Asset Turnover
A/T
Net Sales / Average Assets
Measures the productivity of assets
Earnings Per Share
EPS
Net Income / Average No. of Shares Outstanding
Amount of earnings per share of stock
Price-Earnings
P/E
Market Price / EPS
Value of earnings in the marketplace
Payout
PO
Dividends / Net Income
Share of earnings that owners received
Times Interest Earned
X/I
Profit before taxes and interest / Interest
Measures the coverage of interest charges
Liquidity Ratios
Ratio
Abbrev.
Method of Computation
Significance
Working Capital
W/C
Current Assets - Current Liabilities
Amount of excess funds available
Current Ratio
Cur.
Current Assets / Current Liabilities
Measures short run debt-paying ability
Quick Ratio
Quick
Quick Assets (cash + m.s. + rec. / Current Liabilities)
Measures short-term liquidity, the higher the ratio the stronger the company; needs to be 1 or above
Receivables Turnover
R/T
Net Sales / Average Receivables
Indicates reasonableness of A/R level
Average Collection Period
ACP
Average Receivables / Daily Sales (or Net Sales/365)
Measures effectiveness of collections
Inventory Turnover
I/T
COGS / Average Inventory
Effectiveness of inventory investment
Average Inventory Period
AIP
Average Inventory/Daily COGS (or COGS / 365)
Measures ability to control inventory
Operating Cycle
OC
Average Receivables Period + Average Inventory Period
Time required from production of cash
Financial Strength Ratios
Ratio
Abbrev.
Method of Computation
Significance
Debt to Assets or Debt Ratio
D/A
Total Liabilities / Total Assets
Shows percent of assets financed by debt
Equity to Assets or Equity Ratio
E/A
Total Equity / Total Assets
Shows the protection of creditors
Debt to Equity
D/E
Total Liabilities / Total Equity
Relationship between borrowing and capital
Debt to Capitalization
D/C
Long Term Debt / (LTD + Owners' Equity)
Shows percent of permanent debt in the firm
Average Stockholders' Equity = (Beginning Stockholders' Equity + Ending Stockholders' Equity) / 2
Return on Common Equity (ROCE)
Return on Common Equity =
Net Income ÷ Average Common Stockholders' Equity
Average Common Stockholders' Equity = (Beginning Common Stockholders' Equity + Ending Common Stockholders' Equity) / 2
Market to Book Ratio
Market to Book Ratio =
Market Price of Common Stock Per Share
Book Value of Equity Per Common Share
Book Value of Equity Per Common Share = Book Value of Equity for Common Stock ÷ Number of Common Shares
Dividend Yield
Dividend Yield =
Annual Dividends Per Common Share
Market Price of Common Stock Per Share
Book Value of Equity Per Common Share = Book Value of Equity for Common Stock / Number of Common Shares
Dividend Payout Ratio
Dividend Payout Ratio =
Cash Dividends
Net Income
These ratios allow you to conduct comparative analysis on different companies based their past performance as well or current results with similar companies. Comparing results from previous years can reveal trends and provide a yardstick for evaluating current performance and financial standing. While doing this, the Intelligent Investor should also take into account monetary value, i.e. inflation.
The GPS Insiders Tip
Never make an investment without performing some type of fundamental analysis of the financial statements!
Personal Financial Statements
I know this may seem like putting the cart before the horse, but I wanted you to get a feel for financial statements before I introduced you to an abbreviated way of creating your own. As we mentioned in the beginning, if you want to get to a desired destination, you must first discover where you currently are. Your financial location determines the route to get to your financial destination. Determining where you are involves taking an objective look at your current financial condition, which may not be as bad as you think or could also be worse than you think. But there is only one way to discover your financial reality and that is to discover where you are today! While this may seem complex, it really isn't; you just have to make up your mind, and follow the Nike model - Just Do It! This process will not only help you locate your financial position, but will also provide personal insights about you. Let's get started!
When I began MBA school, I was a bit intimidated at first, and then I graduated to being petrified, then overwhelmed. Every course involved quantitative analysis including leadership and marketing. The light eventually came on after I overcame my issues. You are probably saying - what light? The light of the importance of numbers, the numbers were trying to tell me something. I soon discovered that through studying the numbers, I was able to make more informed decisions as a business man.
Your financial numbers are trying to communicate something to you as well. The positive thing is numbers don't dictate; they simply educate! Let's start our engines and take a road trip and explore the numbers in our life.
Let's begin by developing your personal income statement which is simply comprised of your income minus your expenses which gives you your net income or monthly cash flow. Your statement of income will focus upon three sections: Income, Expenses, and Net Monthly Cash Flow.
Income refers the sources of money that come into your life from the following areas:
Earned income - your job or employment (even if you have a second job both need to be cited)
Passive Income - income that you make without having to work the hours yourself, like rental income, business profits, etc.
Portfolio Income - income you collect from interest payments made to you from investments, dividends paid to you, or royalties you collect from patents, recordings, publications, etc.
Total income is the sum total of all the sources of your streams of income. The next area on your personal income statement is expenses. These are the areas in which your money flows out to pay for your life style. The final area is the net monthly cash flow, which is your total income less total expenses.
Mapping Your Route
Create your personal income statement. Let's begin with the income portion. Please fill out the following blanks:
INCOME
Earned income
Primary employment
Secondary employment
Earned Income total (A)
Passive Income
Real-estate
Business (net)
Passive income total (B)
Portfolio Income (Investments)
Interest
Dividends
Royalties
Portfolio Income Total (C)
Total Income (A + B + C)
The following are the normal expenses that you need to pay monthly (please fill in the blanks and add more if necessary):
EXPENSES
Essentials
Tithe/Offering/Stewardship
Mortgage or Rent
Home maintenance / repairs
Utilities (Water, Gas, Electric)
Telephone (Landline / Cell)
Groceries, Hygiene & Household Supplies
Clothing
Childcare / Petcare
Medical and Dental
Taxes
Federal income, State, SS, Property
Transportation
Auto loan payments
Gasoline
Auto maintenance / repairs
Auto Insurance
Entertainment
Vacation (Saving or spent)
Gifts (Birthdays, Anniversary, Special Holidays)
Special Outings and/or Dining Out
Cable or Satellite Television
Internet
Newspapers/Magazines
Other/Miscellaneous
Insurance
Life insurance
Medical - privately paid
Disability - privately paid
Long-term care coverage
Debt Service
Credit card payments
Personal loan payments
Student loan payments
Installment loan payments
Investments
Money Market Savings
IRA Contributions
Education Savings
Other/Miscellaneous
Total Monthly Expenses
NOTE: Make sure you get all the necessary numbers so that you can see your real financial picture.
Mapping Your Route
Let's calculate your Net Monthly Cash Flow (subtract total expenses from total income)
Total Expenses
Total Income
Net Monthly Cash Flow
Avoiding Road Blocks
Are you living within your means (your net monthly cash flow is zero or more)? If so, congratulations! If not, how does that make you feel?
Now let's examine your personal balance sheet, which focuses upon your assets and your liabilities. Assets are normally discussed as those things that put money in your pocket, and liabilities are those things that take money out of your pocket. Real assets from bank accounts is the sum total of the cash that you have on deposit at the bank in checking, saving, money market accounts, or CD's. Stock is the market value of your stocks and bonds. Receivables address all of the outstanding credit you extended to borrowers or customers and it is their promissory note (promise) to pay you a said amount of money by a particular date.
Mapping Your Route
Create your personal balance sheet
Real Assets
Bank accounts
Stocks
Bonds
Receivables
Real Estate (equity position, fair market value less market)
Business Value (Net)
Real Assets Subtotal
Pseudo Assets
Home
Car(s)
Other
Pseudo Assets Totals
Total Assets (Per Accountant)
Total Real Assets - Pseudo Assets
Liabilities
Credit Cards
Car Loans
School Loans
Personal Loans
Home Mortgage Loan
Other Debt
Total Liabilities
Net Worth (Per Accountant)
(Total Assets per accountant less Total Liabilities)
Real Net Worth
(Total Real Assets less Total Liabilities)
Avoiding Road Blocks
What do your numbers tell you about your spending patterns?
How do you feel about your financial emphasis?
Your Cash Flow Statement
When you consider your income minus your expenses, it reveals to you how much working capital or net income (a type of retained earnings) that is now available for use in future investments in securities or real estate. Personal cash flow is the amount of cash you have available on hand to service your future financial endeavors and emergencies.
Passive Income
The goal of the Intelligent Investor is to create future income for retirement or the spending and gifting phase of life. The GPS Intelligent Investor plans for the future by making financially intelligent decisions today that will impact their future. The Intelligent Investor plans to generate passive income that exceeds their expenses. Every Intelligent Investor creates multiple streams of income so that their financial position is not controlled by one stream.
The Kingdom citizen lives with the expectation of the benefits of reciprocity that is the result of being a tither and a sower. You must exercise faith in order to create passive income through investments and/or creating businesses. The goal is to ensure that your expenses are paid, even in the event that you cannot work a job. You do not want to have to work your whole life; retirement should be a right. However, the only way that your finances will not be tied to your personal time clock or you perpetually working for a paycheck is to have money working for you. Cash flow is extremely critical to your financial future!
In order to create a promising financial future the following must be actively present in your life:
Tithing and Offerings
Saving and Banking
Investing and Hedging
Creating Multiple Streams of Income
Creating Personal Financial Statements
Laying out a GPS Budget 40/60 Plan
Studying the GPS Financial Matrix
Understand Money and Economics
