This is a digital product. No physical product will be mailed to you.
What is a Personal Financial Statement?
A personal financial statement is a document that provides an overview of an individual's financial condition at a specific point in time. It includes a detailed summary of income, expenses, assets, and liabilities. Personal financial statements are often used for personal financial planning, securing loans, or assessing overall financial health.
There are two main components of a personal financial statement:
1. Balance Sheet (Statement of Financial Position):
- Assets: Items of value owned by the individual, such as cash, investments, real estate, vehicles, retirement accounts, and personal property.
- Liabilities: Debts or obligations, including mortgages, car loans, credit card debt, student loans, and other personal loans.
- Net Worth: The difference between total assets and total liabilities. It represents the individual's financial equity.
2. Income Statement (Cash Flow Statement):
- Income: Sources of cash inflow, including salary, wages, bonuses, interest, dividends, rental income, and other earnings.
- Expenses: Outflows of cash, including living expenses (housing, food, utilities), debt payments, insurance, taxes, and discretionary spending (entertainment, travel).
You will receive the Personal Financial Statement in
Creating and regularly updating a personal financial statement can help individuals stay on top of their financial situation, make informed decisions, and plan for the future.
🔗 Click HERE to see the Full Tutorial on YouTube
🔗 Click HERE for the EXCEL version
