Next, you’ll create a balance sheet, which lists your assets and liabilities.Seeing your assets and liabilities in black and white will open up a lot of possibilities you hadn’t considered before.But unless you plan to increase your working hours, ask for a raise, or seek a better-paying job, your income options will be limited.Start creating your financial statement by developing an income statement that lists your monthly income and expenses.Most of us are checkbook-driven; we put our paychecks into our checking accounts, pay bills with that income throughout the month, and, if we’re lucky, we have enough income each month to pay those bills.We’ve all heard the expression, “Those who fail to plan, plan to fail.” In real estate, this saying certainly holds true.It’s essential that you develop a workable plan and start building a team of experts before you get started, so that you start off on the path to success.You’ll see where your debt is concentrated or how to pay it down, and you might see where you could bolster your asset column.(Here’s a list of 29 small business financial resources.)It may lead you to form a plan to decrease expenses or increase income.Essentially you’ll want to determine something specific—how much you want to save, how much of an initial investment you plan to make, what you’ll do with that initial investment, and over what period of time.For example, maybe you’ve decided that within six months, you want to save ,000, which you’ll then turn around and invest into a piece of rental property by the end of one year. From there, perhaps, you might decide that within ten years you want to have five rental properties. Then you must decide where you want your properties to be.