A personal assets and liabilities statement, also known as a net worth statement, is a financial document that lists all of your assets and liabilities, giving you a snapshot of your overall financial health. Assets are anything you own that has value, such as cash, investments, and property. Liabilities are debts you owe, such as credit card balances, student loans, and mortgages.
Creating a personal assets and liabilities statement is a great way to track your progress over time and make informed financial decisions. It can help you identify areas where you can improve your financial situation, such as reducing debt or increasing savings. If you’re interested in creating a personal assets and liabilities statement template, there are a few things you’ll need to do.
First, gather all of your financial documents, such as bank statements, investment statements, and credit card bills. Next, create a table with two columns, one for assets and one for liabilities. List all of your assets in the first column, and list all of your liabilities in the second column. Include the value of each asset and liability at the end of each line.
Assets
Assets can be divided into two categories: current assets and non-current assets. Current assets are assets that can be easily converted into cash, such as cash, checking accounts, and savings accounts. Non-current assets are assets that cannot be easily converted into cash, such as real estate, vehicles, and investments.
When listing your assets, be sure to include the following information:
- A description of the asset
- The date you acquired the asset
- The cost of the asset
- The current value of the asset
If you have any debts secured by an asset, such as a mortgage or car loan, be sure to list the debt as a liability and the asset as collateral.
Liabilities
Liabilities can be divided into two categories: current liabilities and non-current liabilities. Current liabilities are debts that are due within one year, such as credit card balances, utility bills, and income taxes. Non-current liabilities are debts that are due more than one year from now, such as mortgages, student loans, and car loans.
When listing your liabilities, be sure to include the following information:
- A description of the liability
- The date you incurred the liability
- The amount of the liability
- The interest rate on the liability
- The due date of the liability
Once you have listed all of your assets and liabilities, calculate your net worth by subtracting your total liabilities from your total assets. Your net worth is a measure of your overall financial health. A positive net worth means that you have more assets than liabilities, while a negative net worth means that you have more liabilities than assets.
Conclusion
Creating a **personal assets and liabilities statement template** is a great way to track your progress over time and make informed financial decisions. By understanding your financial situation, you can make changes to improve your financial health and reach your financial goals.
If you’re not sure how to create a personal assets and liabilities statement, there are many resources available online and from financial professionals. With a little effort, you can create a statement that will help you take control of your finances and achieve your financial goals.
