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© Copyright The Financial Fence Pty Ltd 2005
HOW THE PERSONAL FENCE WORKS
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
© Copyright The Financial Fence Pty Ltd 2005
A CASE STUDYGEORGE & MARTHA MIAF
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
DEBT
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
INVESTMENTCAPITAL
PERSONALCAPITAL
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate the Opening Equity
PERSONAL CAPITAL $316,000 plus INVESTMENT CAPITAL $63,000 EQUALSDEBT $111,500 plus EQUITY $267,500
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
DEBT
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
-$9,380
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
$9,380INVESTMENT
CAPITAL
PERSONALCAPITAL
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
$4,120
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate the Income and Cash Flow
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
DEBT
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
-$9,380
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
$9,380INVESTMENT
CAPITAL
PERSONALCAPITAL
$319,500
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
$4,120
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate Personal Capital
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
+
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
DEBT
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
-$9,380
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
$9,380INVESTMENT
CAPITAL
$73,000
PERSONALCAPITAL
$319,500
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
$4,120
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate Investment Capital
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
+
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
DEBT
$115,620
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
-$9,380
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
$9,380INVESTMENT
CAPITAL
$73,000
PERSONALCAPITAL
$319,500
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
$4,120
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate the Debt
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
© Copyright The Financial Fence Pty Ltd 2005
EQUITY
$276,880
DEBT
$115,620
EQUITY
$267,500
DEBT
$111,500
INVESTMENTCAPITAL
$63,000
PERSONALINCOME
$51,000
PERSONALCAPITAL
$316,000
NET INCOME+/- to Debt
-$9,380
INVESTMENTINCOME
$180
EXPENSES
-$37,000
INTEREST
-$7,800
NETINCOME
$9,380INVESTMENT
CAPITAL
$73,000
PERSONALCAPITAL
$319,500
CHANGE INPERSONAL CAPITAL
$5,500
CHANGE ININVESTMENT CAPITAL
$5,000
NET CASH FLOW+/- to Debt
$4,120
BALANCE SHEET“AS AT”
BALANCE SHEET“AS AT”
NET INCOME STATEMENT“FOR THE PERIOD”
CASH FLOW STATEMENT“FOR THE PERIOD”
THE FINANCIAL FENCE ®
George and Martha Miaf ExampleCalculate the Closing Equity
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
REVAL/DEVALPERSONAL CAP
-$2,000
REVAL/DEVALINVESTMENT CAP
$5,000
CONTROL CHECKS1. TOTAL CAPITAL = DEBT + EQUITY2. OPENING EQUITY + NET INCOME = CLOSING EQUITY3. OPENING DEBT + NET CASH FLOW = CLOSING DEBT
© Copyright The Financial Fence Pty Ltd 2005
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