The Yariverse

Blog by: Yari

October 5^th, 2025 

You know what I like about Finance? It’s accountability.  

In the simplest terms, Finance is the flow of money: where it’s coming from, where it’s stored, and where it’s going. At all times there should be a “where” tag attached to it. Think of it as your luggage at the airport, getting scanned each time it moves through a new checkpoint. This type of tracking is what makes Finance in any company pivotal to its functionality; it ensures clarity, transparency, and discipline that it’s operating within regulation.

Financial regulations exist for one primary reason; to enforce discipline so no one misreports or loses the track of the money flow. 

Here is where I tell you a joke about how it’s funny that finance bros aren’t very good at accountability, at least not in relationships. It’s a long standing joke in NYC, a cannon event.

Before we enter the portfolio section of this blog pertaining to finance or any complex investment strategies, it’s important to understand the foundation; the three financial statements.

The Income statement

• Tells us where money is earned and spent over a period of time. It measures profitability. 
• Typically, it’s reported quarterly or yearly, though it can be monthly depending on the firm.

In girl code: If the income statement was a Pop Star it’d be Taylor Swift. At her concert you’d experience the story of performance, each quarter would be a new “era”, and the fans (the investors) care most about the finale, or the bottom line.   

The Balance sheet

• Shows where the money is stored: what the company owns (assets), owes (liabilities), and has residual claim to (equity).
• It represents the company’s financial position at a specific point in time.

In girl code: If the balance sheet was an Investor it’d be Warren Buffet: a clear snapshot of a steady billionaire’s wealth, timeless, grounded, and full of financial wisdom. It’d show you what you own, owe, and what’s actually yours.

The Cash Flow Statement

• Shows how the money is actually moving, beyond accounting for profits. 
• It measures liquidity.
• This has three main tiers.
  1. Cash from operation (day to day activates) 
  2. Cash from investing (cash from buying or selling assets)
  3. Cash from financing (cash from borrowing, repaying debts, or issuing equity). 

In girl code: If the Cash Flow was a Hollywood Actor, it’d be “The Rock” Dwayne Johnson, a powerhouse, built for power, strength and movement. Always in action, keeping the business in function.

Financial Model

• This is my favorite part, as it evaluates risk, tests potential scenarios and measures how change can ripple.

In girl code: If the financial model was a Tycoon, it’d be Jeff Bezos, obsessed with scale, future and long term strategies. 

How it Connects

Here’s how it connects into a loop:

Performance (Income) -> Position (Balance) -> Liquidity (Cash Flow)

The income statement flows into the balance sheet’s equity. The Cash Flows statement updates the cash line on the balance sheet.

In girl code: If this was a band, Taylor would sing story (net income). Warren would hold the assets steady with a snapshot of wealth (Balance sheet). The Rock would bring the energy (Cash Flow Statement) and Jeff would scale (Financial Model).

See? It’s not as intimidating as that finance bro that over explains how to order a Novacado bagel. 

In my next finance upload, I’ll talk about how to calculate the three financial statements and eventually, how to create a financial model so you can start creating one as well.