Astrape Finance

What is a Net Worth Statement?

A net worth statement is a financial statement used to list an individual’s or family’s assets and liabilities. Assets are valuables owned by a person, while liabilities are monies owed by a person.

The Net Worth Equation

Net worth is calculated by subtracting total liabilities from total assets.

Net Worth = Assets – Liabilities

If you liabilities are greater than your assets, you are considered to have a Deficit Net Worth.

Deficit Net Worth: Liabilities > Assets

Why are net worth statements important?

Net worth statements gives you a holistic view of where you stand financially. You will be able to see how much your investments have grown and how much insurance coverage you currently hold.  Also, if you have made the commitment to repay your debts by a specific period of time, you will be able to ascertain if it has been accomplished by…

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How to Create Your Personal Income Statement

A personal income statement is much like an income statement businesses use in their financial reporting practices.income statement

Before we tell you how to create your personal income statement, let us first define the term income statement.

An income statement is a financial statement used to calculate the profitability of a company or entity for a specific period. Whether it be monthly, quarterly or annually.

A company’s profitability is calculated using the following equation:

Net Income = Income – Expenses

If a company’s expenses are greater than its income, the company reports they have made a net loss.

Net Loss = 10,000 – 20,000 = (10,000)

To create a personal income statement, you simply list your sources of income (salary, dividends, interest, other income) and your expenses (rent, utilities, food, gas) and deduct your total income from your total expenses.

The aim of every household should be to make a profit. The profits you make could be used to generate more income for your family.

We’ll be sharing this and more at our Family Finance Workshop Series:

See you there!

Astrape Finance

Setting Up Your Financial Management System

Have you thought of setting up your financial management system?fm system

Not sure where to start?

Well look no further, because we’ll tell you how you can accomplish this.

First, let’s define the term system:

A system is a set of processes working cohesively to achieve an objective. In this case, your objective would be manage your money well.

Below are a couple components you could implement in your financial management system:

  1. A list of financial goals – Before you embark your journey to financial soundness (, you will need directions.  Think about where you want to be in the next five years.
  2. A budget – A spending plan used to allocate money for various purposes. You can create a budget by writing it on paper, by using software or by placing money in envelopes via the envelope system.

There are more components you can add to increase efficiency in the management of your financial affairs. The wonderful fact is everyone’s management style is unique, therefore each system need not be identical!

We’ll be sharing this and more at our Family Finance Workshop Series:

See you there!

Astrape Finance

Steps to Financial Soundness

According to, the word “financial” means anything pertaining or relating to money matters. Also, “soundness” means a state or condition free from damage or decay.

Hence, financial soundness brings to mind the following:

  1. Peace of mind
  2. Stability
  3. Freedom

Here’s a question we always like to ask – Would you like to become financially sound?


Before you answer, read these following steps and see if you’ll be willing to get there:

Step 1

Make A Plan –  Know your destination. Create a route to get there.

Step 2 

Be Content – Contentment is an excellent weapon against unfair comparison. Celebrate when others have achieved. You’ll soon be celebrating too!

Step 3

Take On The Challenge of Giving – Giving helps you to place things in perspective. It makes you thankful for what you have.

So. Do you think you are ready to become financially sound?

We’ll be sharing this and more at our Family Finance Workshop Series:

See you there!

Astrape Finance