Control your financial journey
The Money Matrix
Five tools to control your financial future
1. Financial Goals & Objectives
4. Financial Strategies & Action Plans
2. Income & Expenses
What is it?
The annual tally of everything you earn and everything you spend. It captures all your income sources and expenses
Why do it?
It’s your personal ‘profit & loss’ statement that includes these benefits:
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Identifies how much excess cash you have annually that can be invested (or how much you are overspending)
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Identifies specific areas where you may be spending excessively and can cut back
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Lets you know how much income you may need in retirement
3. Assets & Liabilities
What is it?
A snapshot of everything you own and everything you owe. It captures all your assets and liabilities
Why do it?
It’s your personal ‘balance sheet’ that includes these benefits:
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Identifies your net worth (assets less liabilities)
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Identifies if you have an asset or debt imbalance
5. Your Financial Projection
What is it?
A projection into the future of your key financial indicators
Why do it?
It illustrates your likely future financial situation. It can help answer these questions:
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How can I best use my assets?
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How can I redeploy my excess cash
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When will I have my debts paid off?
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How much will I have in retirement?
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When can I afford to retire?
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How much can I leave to my family?
What is it?
A clear definition of the financial outcomes you wish to achieve
Why do it?
They provide the end-point of different aspects of your financial journey. Clearly defining them means that you can put in place appropriate strategies and action plans to better ensure you realise them.
What is it?
The precise steps you need to take to help ensure you can achieve your financial goals and objectives
Why do it?
They provide the road map required to implement your financial plan with milestones along the way.