Debt Equity Financing Financing

Finances can be a touchy subject for many families. Between mounting credit card debt, constant bombardment from banks to refinance or consolidate, and poor examples from the government, it's no small wonder why.

However, people should be striving to keep financial transparency in their lives in spite of these things. The best way to be honest with oneself regarding finances is to keep financial statements on one's cash flow and net worth.

Cash Flow Gives Insight Into Day-to-day Money Management

Cash flow is measured in a person's income statement. Income statements measure a person's entire income against all of his expenditures.