A personal financial statement is a document summarizing an individual's financial position at a given point in time where it shows the individual's net worth.
A Personal Financial Statement is a document, a set of documents, or a spreadsheet that summarizes an individual’s financial position at a given point in time. Furthermore, this document shows what an individual’s net worth is. A Personal Financial Statement can also be used by married couples by combining their total assets and liabilities.
To determine the total net worth of individuals, they must subtract their total liabilities from their total assets. If the total net worth turns out to be positive, that means an individual has more assets than liabilities. On the other hand, if a person’s net worth turns out to be negative, that means he or she has more liabilities than assets; but as time passes, an individual’s net worth may fluctuate because of the value changes of his or her assets and liabilities.
Keeping a Personal Financial Statement will be able to help an individual be able to keep track of his or her financial health. By constantly updating and monitoring your Personal Financial Statement, you will be able to see if your financial health is improving or deteriorating as time passes. In certain cases wherein you want to change your financial situation or apply for a loan or mortgage, you may be able to avoid unnecessary inquiries on your credit reports or having your credit applications declined if you know where you stand financially as a consumer.
Although a person’s income and expenses may be included in a Personal Financial Statement, this type of information is usually entered on a separate spreadsheet or document called an income statement.
A Personal Financial Statement usually contains general information about an individual. This information includes the following:
It also lists all of the available assets and liabilities an individual may have. These assets and liabilities may include the following:
On the other hand, a Personal Financial Statement should not include the following information:
To fill out a Personal Financial Statement, you must provide the following information:
Enter your full legal name.
Enter your contact number.
Enter your residence address.
Enter your city.
Enter your state.
Enter your ZIP Code.
Enter the current date.
Enter the review period for your Personal Financial Statement.
Enter the starting date.
Enter the ending date.
Enter the names of all of your assets and their worth in U.S. dollars.
Cash in bank and on hand
Enter the worth of your cash in banks and the cash you have on hand in U.S. dollars.
Cash in other institutions
Enter the worth of your cash in other institutions in U.S. dollars.
Accounts and Notes Receivables
Enter the worth of your accounts and notes receivables in U.S. dollars.
Enter the worth of your real estate in U.S. dollars.
Securities on Broker
Enter the worth of your securities brokers, securities, or commodities in U.S. dollars.
Stocks and Bonds
Enter the worth of your stocks and bonds in U.S. dollars.
Enter the worth of your savings account in U.S. dollars.
Enter the worth of your life insurance in U.S. dollars.
Enter the worth of any other assets you may have in U.S. dollars.
Enter the total amount of all of your assets in U.S. dollars.
Enter the name of all of your liabilities and enter their worth in U.S. dollars.
Enter the worth of your accounts payables in U.S. dollars.
Enter the worth of your notes payables in U.S. dollars.
Enter the worth of your mortgage payables in U.S. dollars.
Enter the worth of your tax payables in U.S. dollars.
Enter the worth of your loan payables in U.S. dollars.
Enter the worth of your installment accounts in U.S. dollars.
Enter the worth of any other liabilities you may have in U.S. dollars.
Enter the total amount of all of your liabilities in U.S. dollars.
Total Net Worth
Enter the total amount of your net worth by subtracting your total liabilities from your total assets.
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