It is a good practice for every individual to consider a personal statement to track his own financial situation. Like every business, whether big or small, a financial statement records the financial status of the entity. Hence, an individual with a personal statement can always have a financial reference of his financial status.
A personal statement can be very simple and straightforward in its structure and format. It records the financial transactions of the individual to reflect and confirm the individual’s financial health. A financial statement is usually compiled for the year but for an individual, it is best to track the individual transactions immediately before losing track.
There are only 2 basic sections of information in a personal statement; namely, income and liabilities. Income records the flow in of assets while liabilities refer to the debt incurred or outstanding.
The personal statement template may contain:
* Individual’s Name
* Personal statement date
* Income
* Savings account
* Checking account
* Deposits
* Stocks & bonds
* Insurances
* Real estate
* Retirement funds
* Personal property
* Liabilities
* Current debt
* Notes Payable
* Taxes Payable
* Mortgages
* Total Assets
* Total Liabilities
Although it may be a personal statement which simply reflects the individual’s assets and liabilities, it is a good practice to keep a personal statement to ensure that the financial status of the individual is monitored to avoid possible adverse financial condition.
Consider the attached sample template for your convenience.