Cashflow and Compounding
Using a financial statement to set goals
If you are currently holding a number of investments
3. If you are currently holding a number of investments:
- project the expected value of each investment using a return estimate which takes into consideration taxes and fees. Write this projection in your financial statement
- measure the actual investment return in 6 months, 12 months, 3 years and 5 years against these projections
- re-assess the quality of each investment
- assess opportunities to further use your equity and current cashflow
- set a goal as to the number of income producing investments you would like to be holding in say, 6 months, 12 months, 3 years and 5 years.
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