Personal Financial Statement

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Definition of 'Personal Financial Statement'

A personal financial statement is a summary of your financial situation. It includes your assets, liabilities, and net worth. It can be used to track your progress towards your financial goals, such as saving for a down payment on a house or retirement.

There are two main types of personal financial statements: the net worth statement and the cash flow statement. The net worth statement shows your assets and liabilities at a specific point in time. The cash flow statement shows your income and expenses over a period of time, such as one month or one year.

To create a personal financial statement, you will need to gather information about your assets, liabilities, and income. Your assets include cash, investments, real estate, and personal property. Your liabilities include debts, such as credit card debt, student loans, and mortgages. Your income includes wages, salaries, interest, dividends, and other sources.

Once you have gathered all of your information, you can use it to create your personal financial statement. There are many different templates available online that you can use to create your statement.

Your personal financial statement can be a valuable tool for managing your finances. It can help you track your progress towards your financial goals, identify areas where you can save money, and make informed financial decisions.

Here are some tips for using your personal financial statement:

* Review your statement regularly to make sure it is up-to-date.
* Use your statement to track your progress towards your financial goals.
* Identify areas where you can save money.
* Make informed financial decisions based on the information in your statement.

A personal financial statement is a valuable tool that can help you manage your finances and achieve your financial goals. By following these tips, you can get the most out of your statement and make the most of your money.

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