This is the first article in a four-part series where we will explain why it is important to take control over your financial future and how best to do that. The four parts of the series are:

    1. Financial analysis for the individual
    2. Why investing
    3. Demystifying misconceptions about investing
    4. Build your wealth – make investing work for you.

Let’s begin with the first section:

Financial Analysis for the Individual:

You probably have come across the terminology of “financial analysis”. Usually it refers to analyzing a company. It sounds complex and confusing but if you break it down to the level of the individual – i.e., YOU – things start to make sense.

What is Financial Analysis?

It’s an assessment of the Viability, Stability and Profitability of any “living” entity. Be it a business, a project or even an individual.

What is the goal of financial analysis for the individual?
Its goal is to assess the following:
A. Ability to earn income and sustain growth of income in both the short-term and long-term;
B. Ability to pay our debt, loans and other things we owe;
C. Ability to maintain enough cash in our bank account (or elsewhere) to be able to pay for all our immediate needs and obligations;
D. Ability to continue to sustain (i.e., take care of) ourselves without asking/needing help from parents, banks, etc.
In financial terms: A is called “profitability”; B is called “solvency”; C is called “liquidity” and D is called “stability”. Therefore, at all times every one of us must make sure that we are – “profitable”, “solvent”, “liquid”, and; “stable”.

This means that once a week (at the end of the working week) we should ask ourselves and assess whether we could check mark the above as follows:
a. Are we able to sustain our current income? Are we able to increase our wealth in the short-term or long term? (via different sources of income, not just salary – this is where investing becomes a very crucial source of building our wealth and will be discussed in future sections.)
If the answer to all is YES then –
b. Are we able to pay our students loan? Credit cards? And any one we owe money to?
If the answer to all is YES then –
c. Do we have enough cash to pay for all of what we need on a daily basis – food, transportation, rent, etc.?
If the answer to all is YES then –
d. Are we able to continue to take care of ourselves without calling our parents for help? Or asking for a loan from a bank or anyone else – a relative, a friend? (remember any loan would take you back to reassess “b” above).
If the answer to all is YES then –

If at the end of each week we take a few minutes to ask these questions and make sure we could “check mark” them, then this assessment will not only make sure we are on budget but furthermore, it would make sure we are taking care of our present and building a strong and stable financial future. This is what each company does – making sure it stays not only “alive” but also growing and prospering, and we are no different.

We should always assess and reassess that we are not only presently “alive” but most importantly building our financial future to better and greater years to come.

Out of the four “check marks” – “profitability”, “solvency”, “liquidity” and “stability” – the most important one is “profitability”. If you make sure that this one is ‘checked’ at all times, then the rest will follow. And why is that? Because if you not only sustain your current income but most importantly build and grow your wealth then: (1) you do not have to worry about paying your debt. In fact, you may not need to ever take any loans or be in debt; (2) liquidity would be abundant, and; (3) you will never have to depend on others to take care of you. You will have enough wealth to always be able to sustain yourself and prosper.
As you can see “profitability” is the KEY to our financial future and happiness. How and what is the best way to achieve “profitability” will be discussed in future articles.
If you have any questions, comments, clarification, please feel free to contact me at or @HoliSym