Last Updated February 2, 2024
What is a Personal Financial Statement?
A Personal Financial Statement is a document that summarizes your current financial position by detailing your property, assets, and liabilities.
The result is a description of your net worth, also known as your economic position. If you have more assets than liabilities, your net worth is positive; if you have more liabilities than assets, your net worth is negative.
Fill out our simple questionnaire to customize your Personal Financial Statement for a variety of situations, such as:
- Identifying separate property and assets in a divorce or separation
- Proving financial stability to landlords or investors
- Making a guarantee
- Obtaining a loan
What should I include in my Personal Financial Statement?
Your Personal Financial Statement should start with basic information such as your name, contact details, and job description.
Next, consider your assets and liabilities to create a balance sheet displaying your net worth. Add information about any income streams and investments, like your annual salary, real estate transactions, or retirement plans.
Our template includes a net worth calculator that generates a number once you enter your information.
What does a balance sheet include?
Your balance sheet summarizes all your assets and liabilities and comprises the first section of your Personal Financial Statement. Our template generates further details of each line item in your balance sheet in separate sections of your statement. However, consolidating this information in one place helps investors or financial planners quickly compare and contrast your assets and liabilities.
Your assets are what you own that has monetary value. Assets may include:
- Personal property (e.g., motor vehicles)
- Valuables (e.g., jewelry, antiques, etc.)
- Investments and insurance policies
- Bank accounts
- Real estate
A liability is a financial obligation or legal responsibility that detracts from your net worth. Liabilities may include:
- Child or spousal support
- Outstanding loans
- Credit card balances
How do I account for income and contingent liabilities?
In contrast to the balance sheet (which provides insight into existing assets and liabilities), an income statement estimates future profits and potential losses. Our template generates a table with your income and contingent liabilities in the second section of your Personal Financial Statement.
Income is the money you receive regularly and can include sources such as:
- Salary
- Commission
- Real estate income
- Investments
Contingent liabilities are potential debts that you may be responsible for in the future. Contingencies may arise from situations such as:
- Endorsing someone for a loan that defaults
- Pending lawsuits
- Contract disputes
- Tax assessments
