The term balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company's capital structure. In short, the balance sheet is a financial statement that provides a snapshot of what a company owns and owes, as well as the amount invested by shareholders. Balance sheets can be used with other important financial statements to conduct fundamental analysis or calculating financial ratios. -Investopedia.com
Capital is a broad term that can describe anything that confers value or benefit to its owners, such as a factory and its machinery, intellectual property like patents, or the financial assets of a business or an individual. While money itself may be construed as capital is, capital is more often associated with cash that is being put to work for productive or investment purposes. -Investopedia.com
Your credit history is summarized in files known as credit reports, compiled by three independent credit bureaus—Experian, TransUnion, and Equifax. Banks, credit unions, credit card issuers, and other creditors voluntarily report your borrowing and repayment information to the credit bureaus. -Experian.com
Budgeting Strategy of the Week
Value-Based Budgeting:
Instead of feeling frazzled about your finances, would you rather make a difference with your dollars? Beyond meeting your financial necessities, such as food, housing, utility, and transportation cost, values-based budgeting means making an intentional effort to spend any money left over on purchases or causes that are in line with your values.
Keep 40% of your extra money for hitting favorite dining spots or new places that pop up.
Devote 30% of your leftover funds toward social programs, organizations, and local businesses whose work aligns with your values (bonus points if you also offer your time to volunteer).
Use the remaining 30% of your money to register for a self-improvement course or a well-being workshop. -Pen Fed Credit Union
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