I'm so tempted to make a bet right now.
And I'm pretty confident that there is a 99.5% chance that I am right about my assumptions.
Sooooo......have you ever created a balance sheet?
Businesses like JPMorgan Chase, Apple, Google, and Wal-Mart all have a balance sheet. They look at their balance sheet probably as often as you look at your phone (hmmmmmm).
Okay that may be a bit excessive but you get the idea.
Companies review their balance sheet frequently so they can make decisions that will allow them to have more control over the financial direction of their company.
If big companies are using balance sheets to check on their financial health, wouldn't it make sense for you to have one too?
I'm so confident that I would be willing to place a bet for $3M (No, I don't have $5M in my bank account).
Please don't walk around with a
It's not attractive.
It doesn't matter if you have $5 in your pocket or $5MM in your bank account.
What the Heck is a Balance Sheet?
Think of a balance sheet as a menu of all the foods you've ordered in your life.
Now ask yourself: which foods are helping your growth and which foods are hindering your growth?
Foods that are helping you grow into a healthy human being are your "ASSETS".
Foods that are keeping you in the doctor's office and depleting yoru pockets are called "LIABILITIES".
So you have your carrots and kale that are filled with tons of Vitamin A that is good for the health of your eyes.
We will call carrots and kale the juicy assets.
You also have your sour patch and snicker bars that may rotten your teeth if you over-consume them.
We will call sour patch and snicker bars the rotten liabilities.
Most people don't have just a portfolio of assets or just liabilities.
It's usually balanced...like Chicken Barbecue Nachos!
HOW CAN I MAKE MY BALANCE SHEET APPETIZING?
My former boss Jamie Dimon, CEO of JPMorgan Chase & Co.., is widely known for his alluring balance sheet lingo.
He always talks about the "Fortress Balance Sheet".
He talked about it so much that
Please don't be ashamed if you don't know what a balance sheet it.
Jamie Dimon, CEO of JPMorgan Chase & Co., "Fortress Balance Sheet"
It's all about having a balance sheet that's healthy and strong enough to withstand unexpected losses.