Personal Financial Statement Form

A personal financial statement is a document that lists an individual’s assets, liabilities, and income at a certain period of time. This list might be requested by different financial institutions when an individual aims at taking a loan such as a car loan, mortgage, or a business loan if working as an entrepreneur.

From this article, you will learn how to write a good financial statement with all of the details needed.

When Might You Need a Personal Financial Statement?

The main purpose of the spreadsheet is to show a person’s financial stability. This is why the document shows not only the possessions of an individual but also their financial obligations of whatever nature. The document that shows the financial stability of a person helps them become eligible for a car loan or mortgage.

Another situation when a personal financial statement template might be needed is when a newly-created small business wants to attract investors or creditors to get a business loan. Typically, when an entrepreneur operates for a certain period of time, they have enough assets and liabilities to provide prospective lenders with a profit and loss statement or a cash flow statement, but that is not the case for a starting entrepreneur. This is why when a small business is unable to provide a cash flow statement and similar reports to creditors, they will benefit from a personal financial statement. Along with the statement, sources of income need to be presented. It serves to show that an entrepreneur is providing a personal guarantee for the loan, that is, takes the obligation to pay with their personal assets if they default on a loan.

What Should Be Included in a Personal Financial Statement?

Among the assets that are usually included in a personal financial statement template are:

  1. Cash that includes all cash on hands and finance on checking account balances
  2. Finance on savings accounts
  3. Finance on retirement accounts
  4. Personal property with the specification of the type of property, its original cost, and current market value including any mortgages an individual has if any
  5. Assets of high value (for example, fine art or valuable collectibles) specifying their market price
  6. Life insurances specifying beneficiaries, insurance company details, etc.

When it comes to liabilities of a person, a personal financial statement typically lists:

  1. Summarized amount of unpaid accounts specifying all the sums due
  2. Sums owed to institutions such as banks, credit unions, etc.
  3. Mortgage payments owed
  4. Unpaid state or federal taxes
  5. Other liabilities, for instance, child support, current remaining debts, etc.

If you want to get a good personal financial statement template in no time, there is no need to go through the internet. Our template will help you properly list your assets and liabilities in just several minutes.

3 Steps to Creating a Personal Financial Statement

Generally, the document can be crafted in 3 simple steps.

Create a spreadsheet

step 1 create a spreadsheet - creating a personal financial statement

Your list should have at least two sections – one for assets and one for liabilities (balance sheet). It doesn’t matter in what order you place them. Make sure to add a section with calculated net worth. It is convenient to use Excel for such purposes.

List your possessions and liabilities

step 2 list your possessions and liabilities - creating a personal financial statement

The main purpose of the document is to carefully list all of the assets you possess. Please note that you should list only things you own and not include something that is not in your possession, for example, rented premises. It is also crucial to mention in the balance sheet the dollar value for each of the listed assets, but do not include items of small value.

Speaking of liabilities, make sure to include personal loans, credit card balances, any court judgments against you, taxes that are unpaid, and other items that might be considered as your liabilities.

Calculate the totals and net value

step 3 calculate the totals and net value - creating a personal financial statement

When using Excel spreadsheets to create your personal financial statement template, it would be wise to highlight the column with the total sum for both liabilities and assets. You also need to add total value under both sections.

After that, calculate the net worth of both categories. What you need to do is subtract the total amount of liabilities from the total amount of assets. For instance, if your total assets are $300,550 and total liabilities are $80,500, the net worth is $220,050.

How to Fill out a Personal Financial Statement

This is the information a general personal financial statement template includes.

Step 1

Write the name of the document, the name of the individual or financial institution it is prepared for, and the date of creation. Then, write down your name, address, contact information, and your Social Security number.

Step 2

The next section of a personal financial statement template should be a balance sheet, that is, the detailed summary listing of your assets. In the balance sheet, there should be two columns for the asset itself and its amount. Underneath, include individual total asset amount. After that, make the same section for liabilities.

You can also create a separate table for your monthly income with net income underneath it. A similar table can be created for monthly expenses.

Step 3

The last step is to write the net worth summary in your personal financial statement template. At the end of the document the following wording might be included to ensure the information presented is truthful:

“I, [name of the creator], hereby certify and warrant, to the best of my knowledge, that the information included in this personal financial statement is true, precise, and utter.”

At the very end of your personal financial statement template, put your signature and date your financial statement.

If you need a personal financial statement template, you can use one provided on our website. It is free of charge and easy to fill in and download.

Published: Mar 1, 2021