Answer Key Exercises Balance Sheet and Cash Flow 1. Money invested in a savings account earns compounded interest over time. Also, money spent on nonessential items or on depreciating assets is money that cannot be invested and grow. A financial plan must begin with all available information. Also, if records are destroyed, they are very difficult to replace.
Financial statements are an integral part of achieving a financial goal.
A budget should highlight wasteful areas of spending and reveal areas where you may be able to save more, thus making financial goals attainable. Lifestyles and financial situations are always changing. A budget that does not change as your circumstances change is useless. You are on your own.