All You Need to Know About Personal Financial Statement 

By keeping tabs on your finances, you can create a secure and fulfilling future. That’s where a personal financial statement comes in.

At its core, a personal financial statement offers an overview of where you stand financially at any point in time. It can help you succeed in various aspects of your life.

Why You Need a Personal Financial Statement

It can help you if you’d like to: – Take out a loan. – Apply for financial aid. – Make a guarantee.

How a Personal Financial Statement Can Change Your Money Habits

When you see your net worth, you’ll realize that many of your previous and future behaviors affect that figure.

The three major components of your personal financial statement are as follows:

What’s Included in a Personal Financial Statement

Your balance sheet is an overview of your personal net worth and will list all of your assets and liabilities.

Balance Sheet

Income Statement

Your income statement will consist of your salary, bonuses, and commissions. If you have other income from interest, a side job, or dividends, you’ll include this information as well.

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