Finacial Statements Personal Financial Statement

Finacial Statements

Personal financial statement is the full listing of all assets owned and the liabilities owed. There are several benefits of preparing personal financial statements, among which are estimating your net worth and thus being able to determine whether you are meeting your personal financial goals and what could be done to improve your personal financial budgeting. Here is the recapitulation of my financial statements.

Personal Financial Statement

Home Phone

Assets

Liabilities

Cash in Banks

Taxes payable

Marketable Securities

Other liabilities:

Cash Value Life Insurance

Tuition and Fees

Room & Board

Books and Supply

Transportation & Personal expenses

Total Assets

Total Liabilities

Sources of Annual Income

Salary

Other Incomes

Net Worth

What can be inferred from this statement? As just a student of Junior College, I do not have many assets that would create high value of my net worth. My major sources of income are the cash that I have accumulated during my school years on the savings bank account, and the part-time job I am holding while studying, sometimes I get some financial support from my parents, but not on regular basis. Also, I own stocks with the present market value of 2,000 and the profit I get on this stock portfolio is included in the line Other sources of income.

But my liabilities are greater and include different payments, such as tuition and fees for my studies, plus living expenses. My personal financial statement shows positive net worth. But, I would like to keep some of my assets as stocks, and I do not get the cash value life insurance payment unless I chose to do so, this makes my actual disposable possessions 12,000 smaller. Thus, for the next year I will have roughly 18,000 available. But my annual expenditures are estimated at about 21,400, which mean that I will lack 3,400 to keep this level of my expenses up.

Professionally prepared personal financial statements can be required to admit in many different situations, such as various financial transactions; working out estate, retirement, or other financial plan; making a guarantee; identifying the property before signing the marriage contract or under a divorce proceeding; running for a public office; or, of course, obtaining a loan. In my current financial situation, I am considering obtaining a student loan to pay for my future studies and meet my financial needs. In this very situation I will have to provide a clear financial statement of my current assets and liabilities. This will give the bank the precise information on what kind of borrower I am.