The Basics of Financial Statements – Part 4 – Expenses « Health Now, Wealth Forever

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By Gary, on November 9th, 2011

In the previous parts we introduced the financial statement, explained the path the money takes, and introduced the income statement. This diagram explains the other side of the income statement: expenses. All your expenses need to serve a purpose. They can increase your assets, provide you with sustenance or protection, or provide for your future. If your expenses are not serving a purpose then they are harming your financial health.