A personal financial statement is a snapshot of your financial health at a specific point in time. It includes information about your assets, liabilities, income, and expenses. Creating a personal financial statement can be a helpful way to track your progress towards financial goals, identify areas where you can improve, and make informed financial decisions.
There are many different ways to create a personal financial statement. You can use a spreadsheet, a budgeting app, or a dedicated personal finance software program. If you prefer to use a pen and paper, there are also many blank printable pdf personal financial statement templates available online.
What to Include in a Personal Financial Statement
The specific information that you include in your personal financial statement will vary depending on your individual circumstances. However, there are some general categories that you should always include:
Assets: This category includes anything that you own that has value, such as cash, investments, real estate, and personal property.
Liabilities: This category includes any debts that you owe, such as credit card balances, loans, and mortgages.
Income: This category includes any money that you earn from all sources, such as wages, salaries, self-employment income, and investment income.
Expenses: This category includes any money that you spend, such as housing costs, food, transportation, and entertainment.
How to Use a Personal Financial Statement
Once you have created a personal financial statement, you can use it to track your progress towards financial goals. For example, you can use it to:
Set financial goals: A personal financial statement can help you identify your financial goals and develop a plan to achieve them.
Track your progress: A personal financial statement can help you track your progress towards your financial goals and identify areas where you can improve.
Make informed financial decisions: A personal financial statement can help you make informed financial decisions, such as whether to save for retirement or invest in a new home.
Conclusion
A personal financial statement is a valuable tool that can help you manage your finances and achieve your financial goals. If you are not already using a personal financial statement, I encourage you to create one today.
There are many blank printable pdf personal financial statement templates available online, so you can easily find one that meets your needs. Once you have created a personal financial statement, take some time to review it regularly and make adjustments as needed.
