A very simple financial statement can welcome you into the world of finance. Finances are made up of cash flow in or income, cash flow out, or expenses, things that have potential to create cash flow in, or assets, and things that can create outflows or liabilities.

Income and expenses don’t necessarily have to be created or produced from an asset or a liability, and assets and liabilities don’t necessarily have to produce cash flow. Assets can be sold, liabilities have to be paid for. If you welcome yourself into the world of financials, you will learn that teach category can be broken down forward. For example, cash flow in or income can be created by earned income, passive income, or portfolio income. You can gain cash flow from bhusiness, just as you can have outflows from operating expenses associated with running the business.

Your personal financial statement is just one of the many things that will welcome finance into your life. Finance is about managing your money, or a businesses money, or others money. It’s usually not only about money management, but managing your money and how that money will function in a given set of time, and managing your resources to generate more money. It can be about budgeting, saving costs, and cutting expenses, it can be about in making investments to save expenses in the future. It can be about increasing your income through actions, or through buying assets. It’s easy to be intimidated by a financial statement but really all you need to know is that you want to focus on creating assets, and eliminating liabilities, as this will general increase your income, and reduce your expenses, which results in you having more money to work with.

Of course, if you want a more sophisticated in depth view of finance, you want to know all about investing, all about cash flow, portfolio gains and creating passive income, different strategies and techniques and so on that can welcome finance into your life.

Accounting is only part of your financial welcome. Budgeting, cooperate finance, accounting, insuring, income, expenses, assets, liabilities, operating statements, cashflow, balance sheets, stock analysis, investment selection, and many other things are very important if you want to welcome finance into your life.