If my Profit and Loss Statement says I made so much money, why don’t I have any of it?

Remember those loans you took out two years ago? Remember that credit card you ran up this spring? You know that line of credit that you maxed out? You know those bills you got behind on?

If you’ve been paying those off this year, THAT’S where all your profit is going. The only thing that shows on your profit and loss statement is your INCOME and your EXPENSES. Your LIABILITIES (those things you’re paying off) are not reflected there, but they are eating all the money that shows up on the bottom line of your Profit and Loss.

Before you get all grumpy because you have to pay taxes on that income that you don’t get to see now, just remember you didn’t pay taxes on the free money you got to use back when you lived it up on the credit.

Like the big man says, You can pay me now, or you can pay me later!

Welcome to later.