Personal Financial Statement [What You Need to Know]

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

Why You Need a Personal Financial Statement

There are several reasons you may want to create a personal financial statement. It can help you if you’d like to: - Take out a loan. - Apply for financial aid. - Make a guarantee. - Design a retirement, estate, college savings, or other financial plans. - Lease a commercial office or other types of business space.

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. It informs you of whether or not you’re on track to meet your financial goals.

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. Assets may include your home, car, savings accounts, and investment accounts.

Balance Sheet

What’s Included in a Personal Financial 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.

Income Statement 

What’s Included in a Personal Financial Statement

A cash flow statement shows how you spend your money. It breaks down your cash into three main categories: fixed, non-discretionary expenses, variable, non-discretionary expenses, and discretionary expenses or fun money.

Cash Flow Statement

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