One of the topics we learn as Finance professionals is to make projections about the future based on certain assumptions. The output of this exercise, is your future projected financial statements- Profit & Loss Account, Balance Sheet & Cash Flow Statements.
Very few people apply this knowledge to personal finance. I have encouraged people to prepare these projections when I conduct my workshops on Financial Fitness. The results have been amazing. We call it OYE moments in our workshop.
Many times one tends to think about himself based on the past or present circumstances. This is a very myopic view of your finance. If you carefully prepare projected financial statements for 5-10 years, your vision about your future will change. This changes your perception. You now start thinking based on your future projected self instead of being trapped in your present. Believe me, try doing this and see your confidence soar.
Download a sample of this exercise by clicking here
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