Finance Readings | AFM

Building an Emergency Fund Using Money Market Mutual Funds Safely

September 16, 2026 - by Juana Baumgartner

Keeping your emergency cash safe from inflation while ensuring it remains easily accessible is one of the foundational challenges of personal finance. For years, households relied exclusively on traditional brick-and-mortar bank savings accounts. However, with low baseline interest rates often failing to keep pace with the cost of living, letting thousands of emergency dollars sit stagnant means quietly losing purchasing power.

A powerful alternative for modern savers is the Money Market Mutual Fund (MMF). When executed correctly, building your household emergency fund in an MMF combines high liquidity, competitive yields, and strict capital preservation.

What Makes a Money Market Mutual Fund Ideal for Emergencies?

Money market mutual funds are specialized investment products offered by brokerage firms and mutual fund companies. Unlike volatile stock funds, MMFs pool investor capital to purchase ultra-safe, short-term debt instruments such as U.S. Treasury bills, certificates of deposit, and high-grade commercial paper.

Key structural features …

Finance Readings

How to Interpret Financial Statements for Personal Investment Decisions

June 8, 2024August 9, 2024 - by Juana Baumgartner

Interpreting financial statements is a crucial skill for making informed decisions when it comes to personal investments. By understanding the information provided in financial statements, investors can assess the financial health and performance of a company, helping them determine whether an investment opportunity is suitable for their portfolio. In this article, we will explore how to interpret financial statements for personal investment decisions, using examples to illustrate key concepts.

Understanding the Components of Financial Statements

Financial statements typically consist of three main components: the income statement, the balance sheet, and the cash flow statement. Each of these statements provides valuable information about a company’s financial performance, position, and cash flows.

Income Statement: The income statement shows a company’s revenues, expenses, and net income over a specific period. Investors can assess a company’s profitability by analyzing metrics such as gross profit margin, operating profit margin, and net profit margin.
Balance Sheet:

Finance Readings

Comprehensive Examples of Financial Statements for Public Companies

March 10, 2024August 9, 2024 - by Juana Baumgartner

Financial statements are crucial documents that provide valuable insights into the financial performance and position of public companies. These statements are used by investors, analysts, and other stakeholders to assess the company’s profitability, solvency, and overall financial health. In this article, we will present comprehensive examples of financial statements typically published by public companies.

1. Income Statement

An income statement, also known as a profit and loss statement, provides a summary of a company’s revenues, expenses, and profits over a specific period. Below is a simplified example of an income statement for a public company:

Income Statement (Example)	Amount
Revenue	$1,000,000
Cost of Goods Sold (COGS)	$400,000
Gross Profit	$600,000
Operating Expenses	$300,000
Net Income Before Taxes	$300,000
Income Taxes	$100,000
Net Income	$200,000

2. Balance Sheet

A balance sheet provides a snapshot of a company’s assets, liabilities, and shareholder equity at a specific point in time. Below is a …

Finance Readings

Detailed Examples of Annual Financial Statements for Non-Profits

December 8, 2023August 8, 2024 - by Juana Baumgartner

Non-profit organizations play a crucial role in society by serving the community and advancing various causes. To maintain transparency and accountability, non-profits are required to prepare annual financial statements that provide an overview of their financial activities. Understanding these financial statements is essential for donors, stakeholders, and the general public to assess the organization’s financial health. Here are detailed examples of common annual financial statements for non-profits:

1. Balance Sheet

The balance sheet, also known as the statement of financial position, provides a snapshot of the organization’s financial position at a specific point in time. It includes assets (such as cash, investments, and property), liabilities (such as loans and accounts payable), and net assets (the difference between assets and liabilities). The balance sheet demonstrates the organization’s financial solvency and shows how its assets are funded.

2. Income Statement

The income statement, also known as the statement of activities, shows the …

Finance Readings

Sample Financial Statements for Startups Seeking Investors

September 11, 2023August 8, 2024 - by Juana Baumgartner

For startups looking to attract investors, having well-prepared financial statements is crucial. These documents provide valuable insights into the company’s financial health, performance, and potential for growth. In this article, we will provide a guide on creating sample financial statements that can help startups make a strong impression on potential investors.

1. Income Statement

The income statement, also known as the profit and loss statement, provides a summary of the company’s revenues, expenses, and profits over a specific period. It helps investors understand how the business generates revenue and manages costs. A sample income statement for a startup seeking investors may include:

Revenue: Detailing sources of income, such as product sales, services rendered, or licensing fees.
Cost of Goods Sold (COGS): Direct costs associated with producing goods or services.
Gross Profit: Revenue minus COGS, showing the profitability of core operations.
Operating Expenses: Including salaries, marketing, rent, utilities, and other overhead