Taking Stock of Your Current Financial Situation and Goals
In This Chapter
Preparing your personal balance sheet
Looking at your cash flow statement
Determining your financial goals
Yes, you want to make the big bucks. Or maybe you just want to get back the big bucks you lost in stocks during the bear market (a long period of falling prices) of 2000–2002, or perhaps in the infamous global financial crisis of 2008–09. (Canadian investors who followed the guidelines from previous editions of this book did much better than the crowd!) Either way, you want your money to grow so that you can have a better life. But before you make reservations for that Caribbean cruise you’re dreaming about, you have to map out your action plan for getting there. Stocks can be a great component of most wealth-building programs, but you must first do some homework on a topic that you should be very familiar with — yourself. That’s right. More than ever before, you need to understand your current financial situation and clearly define your financial goals as the first steps to successful and careful investing.
Here’s an example. We met an investor who had a million dollars’ worth of Procter ...