Summary
A summary of the Lab that follows. The Scholar will construct a working household budget in three artifacts — a balance sheet, a cash-flow statement, and a twelve-month forecast — and submit them for peer review.
Objectives
- 01Produce a working household balance sheet on a single sheet.
- 02Produce a categorized monthly cash-flow statement.
- 03Produce a twelve-month rolling forecast.
The Lesson
What you will build
Three artifacts, in one workbook. A balance sheet as of last month-end. A cash-flow statement for the last calendar month, categorized. A twelve-month forecast rolling from next month, incorporating known one-off items.
What you will defend
A two-paragraph memo explaining the trend in your net worth over the last four quarters, the largest category of discretionary spend, and the single change you will make in the coming quarter to move the balance sheet.
Key Ideas
- Three artifacts, in one workbook, defended by a two-paragraph memo.