All About the Personal Financial Statement
By keeping tabs on your finances, you can create a secure and fulfilling future. That’s where a personal financial statement comes in.
Why You Need a Personal Financial Statement
– Take out a loan. – Apply for financial aid. – Make a guarantee. – Design a retirement, estate, college savings, or other financial plans. and more...
What’s Included in a Personal Financial Statement
Your balance sheet is an overview of your personal net worth and will list all of your assets and liabilities. Assets may include your home, car, savings accounts, and investment accounts. Liabilities, however, might be your mortgage, auto, student loans, and credit card balances.
Your income statement will consist of your salary, bonuses, and commissions. If you have other income from interest, a side job, or dividends, you’ll include this information as well.
Cash Flow Statement
A cash flow statement shows how you spend your money. It breaks down your cash into three main categories: fixed, non-discretionary expenses, variable, non-discretionary expenses, and discretionary expenses or fun money.
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