Personal Financial Statement

An individual’s financial position at a given point in time

What is a Personal Financial Statement?

A personal financial statement is a document, or set of documents, that outlines an individual’s financial position at a given point in time. It is usually composed of two sections – a balance sheet section and an income flow section.

Although an individual can use more complex personal financial statements, this article will focus on a simple version. The format outlined in this article is a good starting point for individuals who are new to using personal financial statements to record their personal finances.

The Personal Balance Sheet

The balance sheet part of the personal financial statement lists the individual’s assets and liabilities, just as the balance sheet for a business lists all the assets and liabilities of the business.

Personal Financial Statement - Example of Personal Balance Sheet

The sample personal balance sheet shown above outlines John’s financial position as of August 8, 2017.

As can be seen from the balance sheet, John’s total assets are worth $353,600. His total liabilities are $260,500.

Thus, from analyzing the MS Excel balance sheet, we see John’s net worth is $93,100.

The simple format used above can be modified per an individual’s requirements. For instance, Bob might have 5 checking accounts, 5 savings accounts, 3 houses, and 3 cars. With a few modifications, the template used by John can also be used by Bob.

The Income Statement

Unlike the balance sheet, which lists out all stock variables affecting an individual’s financial position, the income statement lists out all flow variables affecting an individual’s financial position.

Example of Personal Income Statement

The sample personal income statement shown above lists John’s monthly income and expenses.

As can be seen from the income statement, John’s total monthly income is $12,000. His total monthly expenses are $9,350.

A combined view:

Personal Financial Statement - Combined Personal Balance Sheet and Personal Income Statement

Why Use a Personal Financial Statement?

A personal financial statement can be a very valuable tool in planning out one’s finances. It is usually goal-oriented and can help an individual reach his or her financial goals, especially for young professionals entering the workforce for the first time. Most of these people are new to financial planning and a simple personal financial statement is an easy place to start.

Why Create a Personal Financial Statement in MS Excel?

  1. – It is easy to add entries, make changes, etc.
  2. – Cloud services such as iCloud or Google Drive allow the user to access his or her financial statement remotely.
  3. – As an individual gains experience regarding financial planning, he or she can make use of the tools offered by MS Excel for financial planning.

Download the Personal Financial Statement Template

Download the free Excel template now to advance your finance knowledge.

Thank you for reading CFI’s explanation of a personal financial statement. To learn more about finances, cash flows, and financial statements, see the following free CFI resources:

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