A personal financial statement is a summary of your financial situation at a specific point in time. It includes information about your assets, liabilities, income, and expenses. Creating a personal financial statement can be helpful for tracking your progress towards financial goals, identifying areas where you can improve your financial situation, and getting approved for loans or other forms of credit.
There are many different ways to create a personal financial statement. You can use a spreadsheet, a word processing document, or a dedicated personal finance software program. If you’re not sure how to get started, there are many templates available online that you can use. personal financial statement template google docs is a good option because it is easy to use and can be accessed from any device with an internet connection.
Assets
The first section of your personal financial statement should list your assets. Assets are anything that you own that has value. This includes cash, checking and savings accounts, investments, real estate, vehicles, and personal property. For each asset, you should list the name of the asset, the date you acquired it, the current value of the asset, and any outstanding debt against the asset.
It is important to be accurate when listing your assets. If you overstate the value of your assets, you may not be able to get approved for loans or other forms of credit. If you understate the value of your assets, you may be paying more taxes than you need to.
Here are some tips for listing your assets:
- Use the current market value of your assets, not the purchase price.
- If you have any debt against an asset, list the outstanding balance.
- If you have any jointly owned assets, list the value of your share of the asset.
Liabilities
The second section of your personal financial statement should list your liabilities. Liabilities are anything that you owe to someone else. This includes credit card debt, student loans, mortgages, and car loans. For each liability, you should list the name of the creditor, the date you incurred the debt, the current balance of the debt, and the monthly payment amount.
It is important to be accurate when listing your liabilities. If you understate the amount of debt you owe, you may not be able to get approved for loans or other forms of credit. If you overstate the amount of debt you owe, you may be paying more taxes than you need to.
Here are some tips for listing your liabilities:
- Use the current balance of your debts, not the original amount you borrowed.
- If you have any jointly owned debts, list the amount of your share of the debt.
Income and Expenses
The third section of your personal financial statement should list your income and expenses. Income is any money that you earn from your job, investments, or other sources. Expenses are any costs that you incur, such as housing, food, transportation, and entertainment.
It is important to be accurate when listing your income and expenses. If you overstate your income, you may not be able to get approved for loans or other forms of credit. If you understate your income, you may be paying more taxes than you need to.
Here are some tips for listing your income and expenses:
- List your income from all sources, including your job, investments, and any other sources of income.
- List your expenses by category, such as housing, food, transportation, and entertainment.
- Use the average amount of your expenses over the past few months, not just the amount of your most recent expenses.
- If you have any irregular expenses, such as medical bills or car repairs, list the average amount of these expenses over the past few years.
Conclusion
Creating a personal financial statement can be a helpful way to track your progress towards financial goals, identify areas where you can improve your financial situation, and get approved for loans or other forms of credit. By following the tips in this article, you can create a personal financial statement that is accurate and informative.
If you need help creating a personal financial statement template google docs, there are many resources available online. You can also find templates in Microsoft Word or other word processing programs.
