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Resources highlighted in the episode
Today, we discuss accounting for personal finance. We cover many examples, which are all represented visually below. The podcast is broken down into the following sections:
- Quote of the Week
- Why is accounting important?
- What is a Balance Sheet and a P&L?
- How do they relate to personal finance and the Savings Challenge?
- Simple Examples
- Complex Examples from listeners
- Inspirational Article of the Week
In this episode, we refer to a couple of resources, which are linked below:
Examples discussed in this episode
The following definitions and examples were also covered in today’s epsiode. Please use these images as you wish:
How do Debits and Credits impact certain areas?
Definitions of each area
o Assets: objects that have, or will generate, value (e.g. cash, computer systems, buildings, cars…), or something owed to you by another party
o Liabilities: something that you owe to another party (e.g. mortgages, vehicle loans, credit card balances…)
o Income: money earned
o Expenses: money spent
Example 1: Accounting for salary
If you have any questions or opinions on this episode, please leave a comment below. I respond to all comments and it would be great to hear from you!