Personal Financial Statement Template

A personal financial statement template is simply a document or set of financial documents that outline a person s current financial situation at a particular point in time. It’s usually written out in two parts: an income statement section and a balance sheet section. In general, a personal financial statement template can be used for most any financial document that would be used to write a personal financial statement. However, it would be prudent to use one which has been specifically designed for the purpose of creating a personal financial statement.

The advantage of using a free personal financial statement template is that it can be easily downloaded from the internet and used immediately. Many templates are available on the web with detailed instructions on how to prepare them. Some examples include: a portfolio balance sheet, an income statement and a cash flow analysis. If you’re looking to get a free personal statement you should try a few different ones until you find one that suits you. It’s also advisable to look up similar financial documents which might have been prepared by a similar author (we will talk about this in a later article).

Personal Financial Statement Template

Download Personal Financial Statement Template
Download Personal Financial Statement Template

One of the main differences between a standard personal financial statement template and one that will be used to create an annual return can be found in the method by which their accounting information is presented. Most financial statements will report the following information: gross income, expenses, other liens (eg. trade debts), assets, liabilities and ownership interest in business/assets. One thing that we may not always expect when reviewing our financial records is the actual value of some of our assets, such as foreign assets held offshore.

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For many people, preparing their personal financial statement templates themselves can be rather time consuming. This is why it may be well worth considering using a ready made template, however with these financial document preparation programs it doesn’t mean that you have to limit yourself only to what’s included in the free samples. Check out several different programs and see how easy it is to customise each one to meet your specific requirements. You could even try making one yourself.

Download Personal Financial Statement Spreadsheets Template

This spreadsheet allows you to create and update an all-in-one personal financial statement that includes:

  • Personal Balance Sheet – for listing assets and liabilities and calculating net worth.
  • Cash Flow Statement – for listing all your inflows and outflows and calculating your net cash flow.
  • Details Worksheet – for listing individual account balances and the details for your properties and loans.
  • Info Sheet – for listing contact info that is typically required in loan applications (e.g. names and addresses of the applicant and co-applicant).

It also includes calculations for some common financial ratios:

  • Basic Liquidity (BLR) Ratio = Total Liquid Assets / Total Living Expenses :: How many months can you live on your liquid assets without any income? This ratio uses info from both the balance sheet and the cash flow statement. It’s one of the really cool things that your PFS can tell you.
  • Debt-to-Income (DTI) Ratio = Annual Debt Payments / Annual Income :: A ratio commonly used by lenders to determine how risky of an investment you will be. It should be below about 35% to be considered to have an acceptable level of debt. This comes from the cash flow statement.
  • Debts-to-Assets Ratio = Total Liabilities / Total Assets :: Indicates the degree of leverage that is used by a person or company to finance their assets. The higher this ratio the less financial flexibility you have. This comes from the balance sheet.
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In order to prepare a free personal financial statement template you’ll need to have accurate and up to date information about your own personal financial position. For example, if you are looking to identify any current or past gaps in your financial record it is important that you list these items as well. It’s also a good idea to identify any secured assets that you currently have (ie. items such as savings accounts or credit cards), as these may be useful to identify an asset base that you could sell at a later stage if you ever find yourself in a similar situation.

Once you have this information, you can then input this data into the fields provided by the template. As soon as your are done you’ll receive a detailed account of your personal financial position and you’ll be able to see where any gaps in your documentation are occurring and how you are performing financially. This could prove to be invaluable should you find yourself in a situation where you need to make changes to your financial strategy or plan. Now, wouldn’t it be nice to actually do something about that rather than just sit and wait for it to happen?

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