What is a Personal Financial Statement?

Sometimes called a Net Worth Statement or Balance Sheet, the Personal Financial Statement is an accounting of everything “you own” (your assets) versus everything “you owe” (your liabilities). In my experience the majority of people who achieve their financial goals use a Personal Financial Statement as a scorecard to track their progress.

Why is a personal financial statement important? A personal financial statement gives a snapshot of your financial health. These numbers are as important to your financial health as your blood pressure, cholesterol, and weight are to your physical health.

As you track your Personal Financial Statement over time you will see the impact of every dollar you earn, every dollar you spend, and every dollar you save. A

A higher net worth facilitates additional financial flexibility for an individual or a family. Conversely, a low or negative net worth is indicative of less financial freedom and flexibility.

Your financial health is worth your time and attention. Checking your progress on your personal financial statement several times a year will keep you on track to maintain your financial well-being.

Sample Personal Financial Statement

Personal Financial Statement
Prepared for:
Prepared by: Bucholtz Consulting,LLC. As of:
Taxable Tax-Deferred
Assets Investments Investments Total
  Investment Assets
Checking & Savings  $-
Money Market  $-
Short-Term CD’s  $-
IRA  $-
401K  $-
Brokerage Account  $-
Life Insurance (Cash Value)  $-
Other Marketable  $-
Total Investment Assets  $-  $-  $-
  Real Property Assets
Real Estate  $-
Business Ownership  $-
Limited Partnerships  $-
Other Non-Marketable  $-
Total Real Property Assets  $- $  $-
  Personal Assets
Personal Residence  $-
Personal Property  $-
Other Personal Assets  $-
Total Personal Assets  $-  $-  $-
Total Assets  $-  $-  $-
  Short-Term Debt
Auto Loans  $-
Credit Card Debt  $-
Other Short-Term Debt  $-
Total Short-Term Debt  $-  $-  $-
  Long-Term Debt  $-
Home Mortgage  $-
Real Estate Mortgage  $-
Business/Partnership Loans  $-
Other Long-Term Debt  $-
Total Long-Term Debt  $-  $-  $-
Total Liabilities  $-  $-  $-
Net Worth  $-     $-     $-