corruption essay in urdu

Essay On Corruption In Urdu

Back to: Urdu Essays List 1

2nd Essay On Corruption In Urdu

آج میں بدعنوانی کے موضوع پر اپنے خیالات کا اظہار کروں گا۔ سیاسی بدعنوانی ناجائز ذاتی فوائد کے لیے حکومت کے اہلکاروں کی طاقت کے غلط استعمال کرنے کو کہتے ہیں۔ کرپشن کا لفظ خراب، ٹوٹے ہوئے، عیبی کے معنوں میں استعمال ہوتا ہے، مشہور فلسفی ارسطو اور بعد میں سیسیور نے اسے بدعنوانی کے معنوں میں استعمال کیا۔ یعنی رشوت لینا، اپنے اختیارات کا ناجائز فائدہ اٹھا کر کسی دوسرے کا وہ کام کرنا جس کا وہ اہل نہیں ہے۔

کرپشن یعنی بدعنوانی کا لفظ آج کل سیاست میں بہت زیادہ استعمال کیا جانے لگا ہے خصوصی طور پر پاکستانی سیاست میں۔ بد عنوانی کے مختلف پیمانے ہیں۔ نچلی سطح سے لے کر حکومتی بلکہ بین الاقوامی سطح تک اس بد عنوانی کی جڑیں پھیل چکی ہیں۔ بین الاقوامی معاملات میں بھی اس کے شواہد ملتے ہیں۔

چھوٹی موٹی بد عنوانیوں میں نوکری پیشہ افراد اپنے افسران کی خوشنودی حاصل کرنے کے لیے موقع بے موقع انھیں تحائف پیش کرتے رہتے ہیں۔ یا پھر ذاتی تعلقات سے کام لے کر اپنے چھوٹے چھوٹے کام نکلوا لیتے ہیں جسے ہم سفارش کا نام دے سکتے ہیں۔ بڑے پیمانے پر بد عنوانی حکومتی عہدے داروں تک جا پہنچتی ہے جس میں ملک کی امانت میں خیانت کرنا، ملک و قوم کا مال اپنے نفس کی پیروی کرتے ہوئے لٹانا، بڑے بڑے ٹھیکے منظور کروانا، مختلف اہم اور ذمّہ داری والے کاموں کے لائسنس حاصل کرنا شامل ہیں۔ ایسی اشیاء کے لائسنس حاصل کرنا جس کی مانگ زیادہ اور ترسیل میں کمی ہو، جس کی ذخیرہ اندوزی کر کے منہ مانگے پیسے وصول ہو سکتے ہوں۔

ہمارے معاشرے میں یہ سب اب عام معمول کے طور چل رہا ہے۔ بڑے بڑے عہدوں پر یا حکومتی شعبوں میں ملازمت حاصل کرنے یا مہیّا کرنے پر بھاری رشوت کا لین دین کرنا، یہ سب بڑے پیمانے کی بد عنوانیوں میں شامل ہے جس کا فوری یا آہستگی سے مگر پورے ملک کو نقصان اٹھانا پڑتا ہے۔ حکومتی محکموں میں پبلک کے ٹیکس کا پیسہ جو مختلف ترقّیاتی، فلاحی اور اصلاحی کاموں کے لئے ملنے والے فنڈ کو اپنی جیب گرم کرنے میں لگادیں تو یہ بلند درجے کی بدعنوانی ہے۔

ہر نئی نسل بھلائی پر ایمان اور معصوم جذبے لے کر پاکیزہ پیدا ہوتی ہے۔ یہ معاشرہ جس میں وزیر اعظم سے قاصد تک اور مل کے مالک سے دیہاڑی دار معاون تک تقریباً ہر کوئی تر بہ تر ہے اور نچڑ رہا ہے، یہاں نئی نسل کی رہنمائی کے لئے شاید کوئی موجود نہیں۔ انھیں مستقبل کی تعمیر کے لئے بڑی توجہ سے اپنے رستے بنانا ہونگے۔

اچھے معاشروں کا مطالعہ اور ذہانت سے پوچھے جانے والے سوال وہ اوزار ہیں جو راستہ بنانے میں مدد دے سکتے ہیں۔ جمہوریت نئی نسل کو اپنا رول ادا کرنے کے لئے میدان مہیا کر سکتی ہے۔ ہمیں امید ہے نئی نسلیں سائنس اور تخلیق کی دنیا کے ساتھ جینے کا فیصلہ کریں گی جو ایسا واحد راستہ ہے جو کرپشن سے آزاد ہے۔

بدعنوانی سے نہ صرف ایک نا اہل کو جگہ ملتی ہے بلکہ ایک اہل کی اہلیت کا اسے صلہ نہیں ملتا جس سے معاشرے میں بڑے پیمانے پر بگاڑ پیدا ہوتا ہے۔

اقبال کے شعر کے ساتھ اپنی بات کا اختتام کرتا ہوں؀

Corruption Essay in Urdu کرپشن (بدعنوانی)

What is corruption how to control corruption in pakistan.

• What are different types of corruption?
• How systemic corruption is different from sporadic corruption?
• How strong democracy can control corruption in Pakistan?

Corruption is one of the major and severest issues faced by Pakistan today. Every single individual in Pakistan is under heavy foreign debt. At the same time, the country is at the brink of going bankrupt. If corruption is stopped, the foreign debt can easily be paid.

Suggesting ways how to control corruption in Pakistan requires in-depth understanding of its causes and the ways how it is practiced. On this platform, you will learn about what is corruption in Urdu as well.

Called “بدعنوانی” in Urdu, corruption is a broad term. Generally, it can be defined as the misuse of entrusted power for illegitimate personal or private gains. It can also be regarded as a form of fraudulent and dishonest conduct by the persons entrusted with a position of authority, typically involving bribery and embezzlement of money or funds.

Corruption can be of several different types, such as political corruption, sporadic corruption, systemic corruption, grand corruption, petty corruption, legal corruption and moral corruption.

Here follows a brief overview of different types of corruption.

Political Corruption: This type of corruption refers to the misuse of authority by the politicians and government officials for the unlawful and undeserved political and personal gains. Such an illegal act is often directly related to their official duties and is done under the color of law.

The political corruption may involve transactions between private and public sector actors to illegally convert collective goods into private-regarding payoffs.

Systemic Corruption: Also called endemic corruption, it can be contrasted with agents or individual officials who conduct corrupt practices within the system. The systemic corruption occurs primarily due to the loopholes in a process or an organization. It is embedded in a wider system which helps sustain it.

Sporadic Corruption: The sporadic or individual corruption is the opposite of the endemic corruption as it occurs irregularly and does not threaten the mechanisms of control. This type of dishonest conduct by people in authority seriously undermines the morale and saps the economy of resources.

Grand Corruption: As the name suggests, grand corruption is a high-level corruption that takes place at the level of policy formation by the officials, politicians or legislators. In other words, it is at the highest level of the public sphere where rules and policies are formulated in the first place.

Petty Corruption: This small-scale corruption is also called bureaucratic corruption. It involves the everyday corrupt practices on the part of the officials or individuals in authority at the implementation end of the rules and policies where the public officials meet the public. It may involve bribery in connection with the enforcement of the existing rules and regulations which makes it different from the grand or political corruption.

Causes of Corruption

After you know the causes of corruption, you will be able to formulate the ways how to control corruption in Pakistan. There can be several different causes of dishonest and fraudulent practices by people in authority.

Some of the factors which may give rise to corruption include:

Lack of Accountability: When people in authority know that they will not be brought to book for their corrupt practice, they feel free to make misuse of entrusted power for unlawful personal benefits.

Low Salaries: Low salaries is one of the basic causes of corruption. When people working for an organization are unable to make two ends meet, they may resort to collect money through illegal and corrupt practices.

Mistrust in Government: When the government is not spending the taxpayer’s money on the rightful causes like education, health and welfare of the people in general, people try to evade taxes. The evasion of taxes can also be considered a type of corruption.

Unemployment: When the educated individuals do not get the jobs they deserve and have expertise for, they try to bribe the individuals in authority to secure their place in an organization. Bribery, as you know, is one of the corrupt practices.

Low Press Freedom: When the press and media are deprived of their right to freedom of expression, people in authority feel free to conduct corrupt practices. It is because they know that their corrupt practices shall not be made public and they will have least chances of facing accountability.

Other causes of corruption include:

• Greed of money and luxury.
• Lust for power.
• Political monopolization.
• Less political transparency.
• Weak democracy.
• Inefficient structures of administration, etc.

How to Control Corruption in Pakistan:

Corruption is engulfing the economy of Pakistan. The country is under the burden of huge circular and foreign debts. If the corrupt practices are not controlled, the country may go bankrupt. So, the people in authority need to formulate effective strategies to stop corruption.

Some of the ways how to control corruption in Pakistan are listed below:

Strong Democracy: If the democratic system of Pakistan is made strong, people will reject the corrupt politicians. They will not entrust power in their hand. So, to be voted to power the next time, the politicians will try to keep their hands clean and avoid corrupt practices.

Running Awareness Campaign: Running an awareness campaign about corruption will make the corrupt individuals feel guilty. Meanwhile, they will also become fearful of facing the consequences.

Transparency of Affairs and Deals: If all the financial affairs and deals at different levels of the business of state are made transparent, people in authority will feel reluctant to get indulged in corrupt practices.

Addressing the Causes of Corruption: Corruption can easily be controlled by addressing and paying attention to the causes of corruption.

To control corruption, the state can do the following things:

• Raise the standard of life of employees.
• Work for the welfare of the people.
• Provide better opportunities for health, education, accommodation, etc.

Search Here

Ahadees e mubarka, hadith about time in urdu, hadith about eyebrows in urdu, hadith about respecting elders, hadith about praising someone, hadith about lanat - is cursing someone permissible in islam, advertisment.

Recent Posts

Easy Ways To Lose Weight

Apps Helps To Improve Mental Health

A Cook Without Head

Obesity Causes And Treatment in Urdu

Masnoon duain, dua for victory and success, dua for ziddi child, dua for jumma to earn sawab, dua for peace of heart, strange & interesting, samandari raaz batanay wali machli, log hakla ker kion boltay hain, bathroom mein zindagi guzarnay wala khandaan, cooking recipes, social sharing.

Ilmlelo.com

Enjoy The Applications

Corruption in Pakistan essay in Urdu | پاکستان میں کرپشن مضمون

Welcome to our corruption in pakistan essay in urdu. In the nation, corruption is a serious issue that has a wide range of effects on everything from daily life to business and politics. It erodes public confidence in leadership and obstructs social and economic advancement. We’ll talk about the many types of corruption in Pakistan and how it affects the country in this corruption essay in Urdu . We will also discuss how to deal with and fight corruption. Continue reading if you want to understand more about this crucial topic.

you can also read corruption essay in urdu

Corruption in Pakistan essay in urdu | پاکستان میں کرپشن مضمون

کرپشن سے مراد ذاتی فائدے کے لیے طاقت یا عہدے کا غلط استعمال ہے۔ یہ رشوت، غبن، اور اقربا پروری سمیت کئی شکلیں لے سکتا ہے۔

Brief overview of corruption in Pakistan | پاکستان میں کرپشن کا مختصر جائزہ

پاکستان میں بدعنوانی کی ایک طویل تاریخ ہے، معاشرے کے کئی شعبوں میں بدعنوانی کی اعلیٰ سطح کی اطلاع ہے۔ اس سے ملک کی معاشی اور سماجی ترقی کے ساتھ ساتھ اس کے سیاسی استحکام پر بھی منفی اثرات مرتب ہوئے ہیں۔

Causes of corruption in Pakistan | پاکستان میں کرپشن کی وجوہات

کمزور ادارے اور نفاذ کا فقدان پاکستان کے ادارے بشمول عدلیہ اور قانون نافذ کرنے والے ادارے اکثر کمزور اور خود بدعنوانی کا شکار ہوتے ہیں۔ اس سے قوانین اور ضوابط کو مؤثر طریقے سے نافذ کرنا مشکل ہو جاتا ہے، جس سے بدعنوانی کا کلچر جنم لیتا ہے۔

سیاسی عدم استحکام اور کمزور حکمرانی سیاسی عدم استحکام اور کمزور طرز حکمرانی نے بھی پاکستان میں بدعنوانی کو جنم دیا ہے۔ جب واضح قیادت اور قانون کی مضبوط حکمرانی کا فقدان ہو تو بدعنوان طریقوں کا پنپنا آسان ہو جاتا ہے۔

غربت اور مواقع کی کمی غربت اور معاشی مواقع کی کمی بھی بدعنوانی کو آگے بڑھا سکتی ہے، کیونکہ لوگ اپنے حالات کو زندہ رکھنے یا بہتر بنانے کے لیے بدعنوان طریقوں کی طرف رجوع کر سکتے ہیں۔

ثقافتی اور سماجی عوامل ثقافتی اور سماجی عوامل، جیسے شفافیت اور احتساب کا فقدان بھی پاکستان میں بدعنوانی کا باعث بن سکتا ہے۔

Consequences of corruption in Pakistan | پاکستان میں کرپشن کے نتائج

نمو اور ترقی پر اقتصادی اثرات بدعنوانی کا پاکستان پر نمایاں اقتصادی اثر ہے، جو ترقی اور ترقی میں رکاوٹ ہے۔ یہ وسائل کی غلط تقسیم کا باعث بن سکتا ہے اور سرمایہ کاری کی راہ میں رکاوٹیں پیدا کر سکتا ہے، جس سے معاشی ترقی کا فقدان ہو سکتا ہے۔

سماجی اور سیاسی استحکام پر منفی اثرات کرپشن پاکستان میں سماجی اور سیاسی استحکام پر بھی منفی اثرات مرتب کر سکتی ہے۔ یہ آبادی کے درمیان عدم اطمینان اور عدم اعتماد کو ہوا دے سکتا ہے، جس سے سماجی بے چینی اور سیاسی عدم استحکام پیدا ہوتا ہے۔

Essay on corruption in Pakistan PDF

عوامی اعتماد اور حکومت پر اعتماد میں کمی اعلیٰ سطح کی بدعنوانی حکومت پر عوامی اعتماد اور اعتماد کو بھی ختم کر سکتی ہے، جس سے سرکاری اداروں کی حمایت میں کمی واقع ہو سکتی ہے۔

شہریوں اور کاروباروں کو نقصان بدعنوانی شہریوں اور کاروباری اداروں کو بھی نقصان پہنچا سکتی ہے، کیونکہ یہ ان کے لیے خدمات اور منصفانہ سلوک تک رسائی مشکل بنا سکتی ہے۔ یہ ایک ناہموار کھیل کا میدان بھی بنا سکتا ہے، جس میں بعض افراد یا گروہوں کو ان کے رابطوں یا رشوت دینے کی صلاحیت کی وجہ سے غیر منصفانہ فائدہ ہوتا ہے۔

Steps being taken to combat corruption in Pakistan | پاکستان میں کرپشن کے خاتمے کے لیے اقدامات کیے جا رہے ہیں۔

حکومتی اقدامات، جیسے کہ قومی احتساب بیورو( NAB ) پاکستانی حکومت نے بدعنوانی سے نمٹنے کے لیے اقدامات کیے ہیں، جس میں بدعنوان اہلکاروں کی تحقیقات اور ان کے خلاف قانونی کارروائی کے لیے قومی احتساب بیورو کا قیام بھی شامل ہے۔

سول سوسائٹی کی تنظیمیں اور میڈیا کی شفافیت اور احتساب کو بڑھانے کی کوششیں سول سوسائٹی کی تنظیموں اور میڈیا نے بھی پاکستان میں شفافیت اور احتساب کو بڑھانے میں اپنا کردار ادا کیا ہے۔

بین الاقوامی امداد اور تعاون بین الاقوامی اداروں نے بھی پاکستان میں بدعنوانی سے نمٹنے کی کوششوں میں مدد اور تعاون فراہم کیا ہے۔

Conclusion | نتیجہ

پاکستان میں بدعنوانی کے دائرہ کار اور اثرات کا جائزہ بدعنوانی پاکستان میں ایک اہم مسئلہ ہے، جس کے ملک کی اقتصادی اور سماجی ترقی کے ساتھ اس کے سیاسی استحکام پر منفی اثرات مرتب ہوتے ہیں۔

معاشی اور سماجی ترقی کو فروغ دینے کے لیے بدعنوانی سے نمٹنے اور روکنے کی اہمیت پاکستان کے لیے یہ ضروری ہے کہ وہ معاشی اور سماجی ترقی کو فروغ دینے اور اپنے شہریوں کی فلاح و بہبود کو بہتر بنانے کے لیے بدعنوانی کا سدباب اور روک تھام کرے۔ یہ مضبوط اداروں، موثر گورننس، اور شفافیت اور احتساب کے عزم کے ذریعے حاصل کیا جا سکتا ہے۔

I hope you enjoy read this corruption essay in Urdu, then you can also read this democracy in Pakistan essay in Urdu

Related Posts

Why dogs follow you into the bathroom: unraveling canine curiosity and loyalty.

December 16, 2023

Full Movie Download HD 1080p, 720p, 480, 360

December 13, 2023 January 8, 2024

Leo Movie Download in Hindi Flmyzilla 720p, 1080p HD

December 13, 2023 January 5, 2024

About Admin

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Waldain ki Izzat/ Ehtaram Essay in Urdu

Best urdu speech ever in written form, urdu speech on hope and motivation, garmi ka mausam essay in urdu.

Urdu Speeches

Find the best Urdu Speeches Online

Namaz Essay in Urdu

Warzish ke Faiday Essay in Urdu

• Uncategorized

Corruption Essay in Urdu

کرپشن | Assalam-o-Alaikum Friends. This Article contains Essay on “ Corruption Essay in Urdu ” 2024 in Written Form. You can read the article and copy it as well. We have updated the PDF and the Video of this script at the end

Introduction

What is Corruption?

Corruption, A Global Issue

The Ripple Effect: Consequences of Corruption

Role of Technology

Introduction | Essay on Corruption in Urdu

 کرپشن، ایک معاشرتی برائی ہے جس کا اثر ایک انفرادی اور پورے معاشرتی نظام پر ہوتا ہے۔ یہ لفظ عموماً جعلی اور بے ایمانی کو ظاہر کرتا ہے جو شخص یا جماعت کسی مفادات کے حصول کے لئے اپنے آپ کو ناپسند طریقوں سے فائدہ اٹھانے میں مصروف ہوتے ہیں۔ ایک فرد پر  کرپشن کا اثرات مختلف طریقوں سے ہوتا ہے۔ پہلی بات تو یہ ہے کہ اگر کوئی شخص  کرپشن کا شکار بنتا ہے تو اس کا اعتماد اپنی معاشرتی اور مشروط ریاستیں ہلکی ہو جاتی ہیں۔ اس کے ساتھ ہی، فرد کا معاشرتی اور روحانی تربیت پر بھی برا اثر ہوتا ہے جس سے اخلاقی اور اجتماعی ارتقاء میں رکاوٹ پیدا ہوتا ہے۔  کرپشن اگر معاشرت میں چھا جائے تو اس کے اثرات ہر طرف دکھائی دینے لگتے ہیں۔ معاشرت میں یہ ایک بھنڈارہ بنتی ہے جو اخلاقی اور قانونی نرمیوں کا ناپسند استعمال کرتی ہے۔  کرپشن پر بات چیت اہم ہے کیونکہ یہ معاشرتی برائیوں کا خاتمہ کرنے اور ایک بہترین معاشرتی نظام کی بناوٹ کا ایک حصہ ہے۔ اگر ہم  کرپشن کو چھپا کر چلتے رہیں گے تو یہ معاشرت کو مضبوطی اور اخلاقیت میں اضافہ کرنے کیلئے رکاوٹ بنا رہے گا۔ بات چیت سے ہم اپنے معاشرتی نظام میں اصلاحات لانے کا راستہ تختیم کر سکتے ہیں اور ایک نیا، بہتر مستقبل تخلیق کر سکتے ہیں۔

What is Corruption? | Essay on Corruption in Urdu

 کرپشن ایک اخلاقی اور قانونی برائی ہے جو ایک فرد یا جماعت کو اپنے مفادات کے حصول کے لئے بے ایمانانہ یا غیر قانونی طریقوں سے کسی شخص یا نظام کو فراہم کرنے کا عمل ہوتا ہے۔ یہ عمل عام طور پر جعلی، دھوکہ بازی، یا بھراسا خیزی کے ذریعے کیا جاتا ہے اور معاشرتی اور سیاسی نظاموں میں انصاف اور برابری کو متاثر کرتا ہے۔  کرپشن کے ذریعے لوگ اپنی طاقت یا مقام کا استعمال کرتے ہیں تاکہ انہیں غیر قانونی طریقوں سے مفادات حاصل ہوں۔ یہ شامل ہوتا ہے مثلثیں، رشوت، اور مخفی معاوضے جیسے فسادآور عملات میں۔  کرپشن ایک معاشرتی برائی ہے جو انسانیت کے اصولوں اور قانون کے خلاف ہوتی ہے۔ یہ نہایت ہی زخمناک اور مختلف قطبہ حیثیتوں میں اضافہ ڈالتا ہے، اور معاشرتی ترقی اور بہتری کے راستے میں رکاوٹ ڈالتا ہے۔ یہ سیاست، تجارت، اور اداروں میں بڑھتی ہوئی  کرپشن ایک ملک کی ترقی کو بھی روکتی ہے۔

Corruption a Global Issue | Essay in Urdu

 کرپشن ایک جان لیوا اور ملکوں کی ترقی میں رکاوٹ ڈالنے والا مسئلہ ہے جو دنیا بھر میں اپنا جال بچھاتا ہے. یہ ایک عظیم اور آمنہ سطح کا مسئلہ ہے جو مختلف تشکیلوں اور شرائطوں میں مختلف روپوں میں نظر آتا ہے  کرپشن کا جال آم ترقی پذیر ملکوں سے لے کر خودمختار ملکوں تک اپنی چالاکیوں کو بکھیرتا ہے. اس کا اثر ہر شہرت یافتہ ملکوں سے لے کر گرہ بند زمینوں تک ہر جگہ محسوس ہوتا ہے.  کرپشن کا شکار ملکوں میں حکومتیں، عہد اور شہرت یافتہ شخصیات ہوتی ہیں جو اپنے منافع کے لئے نظام کو خود پر مبنی کرتی ہیں یہ جال عام لوگوں کو بھی متاثر کرتی ہے، جو بنیادی خدمات سے محروم ہوتے ہیں. دولتمند ہونے والے افراد اپنے زیرِ اہتمام ملکوں میں قانون کی عدم پیشگوئی، جابیں اور حقوقی جوازات میں  کرپشن کا شکار ہوتے ہیں  کرپشن کا جال ختم کرنے کیلئے بین الاقوامی ہم آہنگی اور عوام کو اہم حقوق اور خدمات فراہم کرنے کیلئے جمعیت بنانا ضروری ہے. حکومتیں کو اپنے عہدوں اور ذمہ داریوں کو پورا کرنے کے لئے مضبوط قانون سازی اور عدلیہ کو مزید مستقل بنانا ہوتا ہے تاکہ عوام کو ایماندار اور عادلیہ فراہم ہو سکے. کرپشن ایک جان لیوا اور ملکوں کی ترقی میں رکاوٹ ڈالنے والا مسئلہ ہے جو دنیا بھر میں اپنا جال بچھاتا ہے. یہ ایک عظیم اور آمنہ سطح کا مسئلہ ہے جو مختلف تشکیلوں اور شرائطوں میں مختلف روپوں میں نظر آتا ہے  کرپشن کا جال آم ترقی پذیر ملکوں سے لے کر خودمختار ملکوں تک اپنی چالاکیوں کو بکھیرتا ہے. اس کا اثر ہر شہرت یافتہ ملکوں سے لے کر گرہ بند زمینوں تک ہر جگہ محسوس ہوتا ہے.  کرپشن کا شکار ملکوں میں حکومتیں، عہد اور شہرت یافتہ شخصیات ہوتی ہیں جو اپنے منافع کے لئے نظام کو خود پر مبنی کرتی ہیں یہ جال عام لوگوں کو بھی متاثر کرتی ہے، جو بنیادی خدمات سے محروم ہوتے ہیں. دولتمند ہونے والے افراد اپنے زیرِ اہتمام ملکوں میں قانون کی عدم پیشگوئی، جابیں اور حقوقی جوازات میں  کرپشن کا شکار ہوتے ہیں  کرپشن کا جال ختم کرنے کیلئے بین الاقوامی ہم آہنگی اور عوام کو اہم حقوق اور خدمات فراہم کرنے کیلئے جمعیت بنانا ضروری ہے. حکومتیں کو اپنے عہدوں اور ذمہ داریوں کو پورا کرنے کے لئے مضبوط قانون سازی اور عدلیہ کو مزید مستقل بنانا ہوتا ہے تاکہ عوام کو ایماندار اور عادلیہ فراہم ہو سکے

یہ ایک اہم موضوع ہے جو دنیا بھر میں مختلف معاشرتی اور معاشی حلقوں میں مضبوط ہوتا ہے.  کرپشن کا اثر صرف  کرپشن کرنے والے فرد پر ہی نہیں بلکہ پورے نظام اور معاشرتی چرچے پر بھی پڑتا ہے  کرپشن کے نتائج مختلف اہم شعبوں میں حسینہ اور بربادی کا سبب بنتے ہیں. پہلے تو، معاشرتی نظام میں ایک اچھی معاشرتی بنیاد پر مبنی ترقی رکنا مشکل ہوتا ہے. لوگوں کو مناسب تعلیم، صحت، اور دیگر بنیادی خدمات حاصل ہونے میں مشکلات پیش آتی ہیں جو ایک صحتمند اور مضبوط معاشرتی بنیاد کے لئے ضروری ہیں دوسرے پہلو میں،  کرپشن ملکوں کی معاشی ترقی پر بھی بڑا اثر ڈالتا ہے. سرمایہ کاری اور تجارت میں کمیوں کی بنا پر ملکوں کی معیشت متاثر ہوتی ہے اور عوام کو روزگار کا فرصتی اور بھراسے کا موقع ملنا مشکل ہوتا ہے  کرپشن کا اثر سیاستی نظاموں پر بھی ہوتا ہے. ایماندار اور قائل کرنے والے لوگوں کو سیاست میں شرکت کرنے کا موقع نہیں ملتا، جس سے سیاست میں بھی  کرپشن بڑھتا ہے. یہ معاشرتی اور معاشی ترقی کو رکنے والا ایک بڑا رکن ہے

The Role of Technology: A Double-Edged Sword

تکنالوجی نے  کرپشن کے حوالے سے مختلف اثرات چھوڑے ہیں، جو کہ شفافیت میں مدد فراہم کرنے سے لے کر دھوکے بازی کی نئی راہیں متاہل ہوتی ہیں. ٹیکنالوجی کی ترقیات نے  کرپشن کے خلاف جدوجہد میں دو طرح کا کردار ادا کیا ہے، جو کہ علاج اور خطرہ دونوں ہی ہوتا ہے پہلی بات یہ ہے کہ ٹیکنالوجی نے شفافیت میں بہتری لانے میں اہم کردار ادا کیا ہے. الیکٹرانک گورننس اور ڈیجیٹل حکومت کے ذریعے حکومتیں اور مختلف ادارے اپنے عمل کردہ کو عوام کے ساتھ ٹرانسپیرنٹ رکھ سکتے ہیں. الیکٹرانک گیٹ کی مدد سے عوام تقریباً فوراً معلومات حاصل کر سکتے ہیں، جو کہ  کرپشن کے خلاف جدوجہد کو مضبوط بناتا ہے دوسری جانب، تکنالوجی نے نئی راہیں فراہم کی ہیں جس سے  کرپشن بڑھ سکتا ہے. کمپیوٹرایزڈ نظامات اور انٹرنیٹ کا استعمال، مختلف علائقوں میں فراڈ کرنے کے لئے نئے ذرائع فراہم کرتا ہے. ڈیٹا کا چوری کرنا اور چینل میں ناجائز ترمیمات کرنا، ٹیکنالوجی کے استعمال کی مثالیں ہیں جو  کرپشن کو بڑھا سکتی ہیں.

تکنالوجی کا  کرپشن کے خلاف لڑائی میں دوابط کا ہونا ضروری ہے. مندرجہ ذیل چیزیں ہونی چاہئیں

تکنالوجی کا صحیح استعمال: حکومتیں اور ادارے کو ٹیکنالوجی کا صحیح استعمال کرنا چاہئے تاکہ  کرپشن کم ہو سکے. شفاف عمل کردگی اور محفوظ ڈیجیٹل نظامات کا استعمال کرنا اہم ہے.

تعلیم و تربیت: عوام کو ٹیکنالوجی کے فائدے اور نقصانات کی سمجھ دینے کیلئے تعلیم و تربیت مہم ہونی چاہئی۔

قانونی تشخیص و ترتیبات: قانونی نظامات میں بھی تکنالوجی کو شامل کرکے جرائم کی تشخیص اور عدالتی عمل کیلئے ترتیبات بنانی چاہئیں

بین المللی ہم آہنگی: دنیا بھر کے ملکوں کو ملکر ٹیکنالوجی کو  کرپشن کے خلاف لڑائی میں مدد فراہم کرنا ضروری ہے. ٹکنالوجی کا انسانی حقوق کے لحاظ سے استعمال: ٹیکنالوجی کا استعمال انسانی حقوق کی پیشگوئی کے لحاظ سے ہونا چاہئے تاکہ عوام کو حفاظت ملے

Conclusion | Corruption Urdu Essay

یہ لڑائی جدوجہد سے بھرپور ہے، مگر یہ ہمیں ایک روشن مستقبل کی توقع دیتا ہے  کرپشن کا خاتمہ ایک گہرا سائیکولوجیکل اور سماجی تبدیلی کا معاملہ ہے. یہ معاشی، سماجی اور سیاسی سکون کیلئے ہمیشہ سے اچھا ہے اور اسے ختم کرنے کا حل ہمارے ہاتھوں میں ہے. ہمیں اپنے عہدوں کو سچائی اور ایمانداری سے نبھانا ہو گا تاکہ ہم اپنے ملکوں کو بے  کرپشن بنا سکیں

ایک مظبوط اور تعلیم یافتہ جماعت کی بنا پر ہی ہم اس مشکل میں کامیاب ہو سکتے ہیں. تعلیم ایک چمکتا ہوا ہلکا ہے جو ہمیں  کرپشن سے لڑنے کی صلاحیت فراہم کرتا ہے اور عوام کو اپنے حقوق کی پہچان کرنے میں مدد کرتا ہے عالم بھر میں مختلف حکومتیں اور ملکیں ایک دوسرے کے ساتھ تعاون کر رہی ہیں تاکہ  کرپشن کے خلاف مشترکہ جدوجہد ہو. بین الاقوامی ہم آہنگی، ٹیکنالوجی کا استعمال اور مشترکہ سرمایہ کاری کے ذریعے ہم ایک دوسرے کی مدد کر رہے ہیں آئندہ کی سالگرہوں میں، ہمیں اپنے عہد وفا کرتے ہوئے اپنے ملکوں کو  کرپشن سے نجات دینے میں کامیاب ہونے کا امکان ہے. یہ ہماری جماعتوں اور ملکوں کے لئے روشن مستقبل کی طرف ہے، جہاں ایمانداری اور سچائی ہر غلبہ پاتی ہے اور ہم سب مل کر ایک بہترین دنیا کا خواب دیکھتے ہیں.

Corruption: FAQs

Faqs – demystifying corruption.

What is the root cause of corruption? Corruption finds its roots in a complex interplay of factors, including socio-economic disparities, weak governance, and cultural tolerance for unethical practices.

How does corruption impact economic growth? Corruption impedes economic growth by diverting resources away from productive channels, creating an uneven playing field for businesses, and deterring foreign investments.

Can technology effectively combat corruption? Yes, technology can act as a powerful tool in combating corruption by promoting transparency, enhancing accountability, and streamlining processes.

Are there success stories in the fight against corruption? Several nations have successfully curtailed corruption by implementing robust anti-corruption measures, emphasizing the importance of strong institutions and public engagement.

What role does education play in preventing corruption? Education plays a pivotal role in preventing corruption by instilling ethical values, fostering critical thinking, and empowering individuals to question and challenge corrupt practices.

How can citizens contribute to the fight against corruption? Citizens can contribute by staying informed, holding public officials accountable, and actively participating in initiatives that promote transparency and integrity.

Thanks for reading this Article on “ Technical Education Essay in Urdu ” in Written Form. If you liked reading this article or have suggestions please write it down in the comments section. Thankyou for visiting our Site !

Urdu Speech on “CLEANLINESS”

PAKISTAN KA NIZAM E TALEEM URDU SPEECH

Urdu Speech on “motivational speech”

URDU SPEECH ON 14 AUGUST 1947

Urdu Speech on “Independence Day”

Urdu Speech on “ Importance of Time “

Urdu Speech on “ Thankyou Speech for Welcome Party ”

Very Sad Farewell Speech in Urdu PDF Written

Funny Farewell Speech in Urdu PDF Written

Emotional Farewell Speech in Urdu PDF Written

Urdu Speech on “Shaheed ki jo maut hay wo qaum ki hayat hay”

Urdu Speech on “Watan se Muhabbat”

Urdu Speech on “Hum Zinda Qaum Hain”

Urdu Speech on “Defence Day”

Urdu Speech on “ Inqilab Aayega “

Urdu Speech on “Father’s Day”

Urdu Speech on 23 March 1940

Urdu Speech on “Markaz-e-Yaqeen Pakistan”

Urdu Speech on “Khamoshi Kab Tak”

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Related News

Humnay Takhreeb se Khud apnay Nasheman Phonkay

Youtube watch time machine, technical tools by your brother, complete your youtube watch time.

Urdu Essay – Moaashray ka Nasoor Corruption

by Sajid | Oct 21, 2020 | URDU 12TH

[post_title] in PDF Format for FBISE & Other Pakistani Boards

• Issue: * Notes not according to latest syllabus Notes and Topic not matching There is a mistake in the notes Broken Link
• Your Name: *
• Your Email: *

For any mistake in [post_title], please report it to us immediately by pressing “ Report Mistake(s) in Notes ” Button above, so that we can fix the issue accordingly.

Why Should You Learn from Our Notes:

• We are providing the best ever notes according to the latest academic course prescribed by the Federal Board of Intermediate and Secondary Education or the Federal Directorate of Education Islamabad, as the case may be. All of our notes are the best ever notes as compared to the key books / guide books / handouts available in the market. Our Notes are created very comprehensively and contains the solutions to the questions asked at the end of the exercises, i.e. solved exercises, review questions, important questions, fill in the blanks and multiple choice questions (mcqs).
• Our Notes are recommended by the Honourable teachers of Federal Government Schools and Model Colleges.
• Our Notes are helpful in scoring good marks in the board examinations. Our notes are designed in such an easy way that the students can understand the questions easily without the help of any tutor.

Do you want to keep yourself Updated?:

• If you want to keep yourself updated regarding our notes / keybooks / guides / guess papers / past solved papers and much more useful content, you shoud follow us on Instagram , follow us on X , like our Facebook Page and subscribe to our YouTube channel .
• We are also working in developing our Android and Apple Mobile Application. In Sha Allah we launch both the Applications very soon. We will announce regarding the same on our Official Channels as well as on our website, so stay tuned to our website and other social media chanels to keep yourself updated.
• We are going to introduce many other useful online programs for our students, their parents and the Honourable Teachers. These programs will motivate all of you towards spread of quality education.

Be the part of our team:

• If you are a student or a teacher, we cordially invite you to join our team as a student or as a teacher. We are soon launching an online registration forum for both the students and the teachers wherein they can interact each other through our website. The students of our website will have to pay a minor dues for getting the services with regard to the notes and other queries from the list of our qualified and professional teachers.

public education thesis

Corruption In Pakistan Essay | 500 Words & 800 Words

by Pakiology | Mar 22, 2024 | Essay , English | 2 comments

Page Contents

1) 500 Words Essay On Corruption In Pakistan

2) 800 words essay on corruption in pakistan, understanding corruption in pakistan, the causes of corruption in pakistan, the consequences of corruption in pakistan, the way forward: tackling corruption in pakistan.

Corruption is a pervasive problem in Pakistan that has negatively impacted the country’s economy and political stability. It is the abuse of public office for private gain, and it is a major obstacle to Pakistan’s development.

There are many causes of corruption in Pakistan, including a lack of transparency in government institutions, weak law enforcement, and a lack of accountability. In addition, corruption is often seen as a way for people to get ahead in a society that is plagued by inequality and a lack of opportunities.

One of the most prominent forms of corruption in Pakistan is corruption in the public sector. Government officials often demand bribes from citizens in order to provide them with services that they are entitled to, such as issuing licenses or permits. This not only undermines the rule of law but also discourages investment and stifles economic growth.

Another major problem in Pakistan is corruption in the private sector. Companies often bribe government officials in order to secure contracts or other favors, which can lead to inefficient and wasteful use of public resources. This not only harms the economy but also undermines public trust in the government and private institutions.

There are several factors that contribute to the high levels of corruption in Pakistan. One of the main reasons is the lack of accountability and transparency in the country’s political and economic systems. This allows corrupt individuals to operate with impunity, as they are able to conceal their activities and avoid being held accountable for their actions.

Another contributing factor is the widespread poverty in Pakistan. Many people are willing to engage in corrupt activities in order to make ends meet, as they see it as a means of surviving in a difficult economic environment.

Furthermore, corruption is often perpetuated by a lack of strong institutions and effective laws to prevent and punish it. In many cases, the government and law enforcement agencies are themselves involved in corrupt activities, which makes it difficult to address the problem.

The consequences of corruption in Pakistan are severe. It undermines the rule of law and weakens public trust in the government, leading to social and political instability. It also hinders economic development and stifles entrepreneurship, as it creates an uneven playing field for businesses and discourages investment.

In order to combat corruption in Pakistan, it is essential for the government to implement strong legal frameworks and institutional mechanisms to promote accountability and transparency. This could include measures such as stricter laws against corruption, better oversight of public officials and institutions, and improved access to information for the general public.

Additionally, there needs to be a cultural shift in the country towards greater integrity and honesty. This can be achieved through education and awareness-raising campaigns, as well as by encouraging a sense of social responsibility among the people of Pakistan.

In conclusion, corruption is a major challenge in Pakistan that needs to be addressed in order to promote economic development and political stability. By implementing effective legal frameworks and promoting a culture of integrity, it is possible to combat corruption and build a more just and prosperous society.

Pakistan, a country known for its rich cultural heritage, is facing numerous challenges in its journey toward becoming a developed nation. One of the most persistent and widespread issues that the country has been grappling with is corruption. Corruption in Pakistan has reached a level where it is not only hampering the economic growth of the country but also undermining the social and political fabric.

Corruption can be defined as the abuse of power or position for personal gain. It takes many forms, from bribery and embezzlement to nepotism and fraud. In Pakistan, corruption has permeated all levels of society, from the lowest echelons to the highest. It has become so widespread that it is now considered a norm in the country.

There are several factors that have contributed to the high levels of corruption in Pakistan. Some of the major causes include:

Lack of effective government institutions:

The government institutions in Pakistan are not strong enough to prevent corruption. There is a lack of accountability and transparency in the workings of these institutions, making it easier for corrupt officials to carry out their activities without fear of consequences.

Political instability:

Political instability has been a constant in Pakistan’s history, which has contributed to widespread corruption in the country. When political leaders are more focused on retaining power and advancing their own interests, they are less likely to prioritize the fight against corruption.

Poverty and income inequality:

Poverty and income inequality are also contributing factors to corruption in Pakistan. When people are struggling to make ends meet, they may be more likely to engage in corrupt activities to earn extra income.

Weak rule of law:

The weak rule of law in Pakistan has also contributed to the high levels of corruption in the country. When laws are not enforced and the justice system is unable to hold corrupt officials accountable, it is easier for corruption to thrive.

The consequences of corruption in Pakistan are far-reaching and damaging. Some of the major consequences include:

Hampering economic growth:

Corruption has a significant impact on the economy of the country. It undermines investment and creates an environment that is hostile to business. This leads to lower economic growth, less job creation, and decreased prosperity for the people of Pakistan.

Undermining social and political fabric:

Corruption not only undermines the economy but also the social and political fabric of the country. When people lose faith in the government and its institutions, it creates a void that can be filled by extremist and extremist ideologies.

Impeding development:

Corruption also impedes development by diverting resources away from areas that need them most. When public funds are misused or stolen, it means that schools, hospitals, and other public services are not receiving the support they need to provide quality services to the people.

Discouraging foreign investment:

Corruption can also discourage foreign investment, as investors are less likely to invest in a country where they perceive a high risk of corruption. This means that the country misses out on the benefits of foreign investment, such as job creation and economic growth.

Tackling corruption in Pakistan will require a multi-faceted approach that involves the government, civil society, and the private sector. Some of the measures that could be taken include:

Strengthening government institutions:

The government must take steps to strengthen its institutions and make them more accountable and transparent. This can be done by implementing effective anti-corruption measures, such as setting up independent watchdog agencies and increasing transparency in the workings of government institutions.

Improving the rule of law:

The government must also work to improve the rule of law in the country, by enforcing laws and regulations that prevent corruption, and by ensuring that corrupt officials are held accountable.

Encouraging civil society engagement:

Civil society can play an important role in tackling corruption in Pakistan, by raising awareness about the issue, advocating for reforms, and monitoring government activities.

Promoting ethics and integrity:

The private sector can also play a role by promoting ethics and integrity in their own operations, and by supporting anti-corruption initiatives.

Increasing transparency and accountability:

The government must also take steps to increase transparency and accountability in its operations, by making its activities more open and accessible to the public.

Providing education and training:

The government can provide education and training to its citizens, particularly the youth, on the dangers and consequences of corruption, and on the importance of integrity and ethical behavior.

In conclusion, corruption in Pakistan is a major barrier to development, and it is essential that the government, civil society, and private sector work together to tackle this issue. While there is no easy solution to corruption, the steps outlined above, if implemented effectively, can help to reduce corruption and create a more prosperous and just society in Pakistan.

Find more Essays on the following Topics

Ask Your Questions

You might like, democracy in pakistan essay with quotations.

Explore the evolution, challenges, and progress of democracy in Pakistan in this in-depth essay. Gain insights into...

Problems of Karachi Essay | 200 & 500 Words

Explore the multifaceted challenges faced by Karachi in this comprehensive essay. From overpopulation to traffic...

A True Muslim Essay With Quotations 2023

A true Muslim essay is about the qualities of a true Muslim and how they embody the teachings of Islam in their daily...

Health is Wealth Essay For Students

In this essay, we explore why health is wealth and why it is crucial to prioritize our physical and mental well-being...

It’s a good and simple worded essay , helped me understanding this subject .

Amazing each and every word was understandable and it adds information in my knowledge Thank You sooo much

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Submit Comment

• class-9-notes
• Friendship quotes
• Scholarships
• Science News
• Study Abroad
• Study in Australia
• SZABMU MDCAT
• UHS Past MCQs
• Universities

financial services personal statement

How to create a personal financial statement.

Assessing your financial situation can help you understand your options for creating a steadfast financial future. To outline your finances, a personal financial statement can provide an overview of your financial circumstances. With this in mind, here’s how a personal financial statement is used and how to create one for yourself. If you’d like hands-on guidance in creating a personal financial statement and using it to strategize your overall financial plan, consider enlisting the help of a financial advisor .

What Is a Personal Financial Statement?

A personal financial statement, or PFS, is a document or set of documents that outlines a person or family’s financial position. The  balance sheet  portion of a PFS exhibits your assets and liabilities, or net worth. Some people create more detailed personal financial statements, including an income statement or other documents.

A person should create a PFS if they want to make a  financial plan . These statements are usually goal-oriented and can help individuals and families reach their financial objectives. They are especially important for young professionals who are just starting their financial journeys. If you’re new to financial planning, a PFS is a great place to start because it will help you understand your current position as well as your options for moving forward.

A PFS is often used when someone is taking out a personal loan. Lenders may ask a potential borrower to create a PFS to understand their debt to income ratio, which is a determining factor in the interest rate and amount that the borrower will receive.

What to Include in a Personal Financial Statement

As previously mentioned, there are two core sections of any PFS. Here’s how each section can be defined:

• Balance sheet: Your balance sheet will include all your assets and liabilities. This may include your home, mortgage, car, auto loan, taxes, savings accounts, investment accounts, credit card balances and more. Note that the balance sheet does not include cash flow but does include the total amounts due or the total value of each account.
• Income statement: Your income statement will include your salary, bonuses and commissions. It may also include any dividends and interest earned, gig income or other income. It will also include your income taxes, insurance premiums and other steady cash outflows. This may include monthly paychecks, budget line items such as a monthly grocery bill and other monthly payments that detract from your monthly income.

What to Exclude from Your Personal Financial Statement

Your PFS is broken down into assets and liabilities. However, there are several things that you will not include in your PFS.

If you own a business or have business-related assets and liabilities, they will not be included on your PFS unless you are directly responsible for the costs. An example of this is if you are taking out a personal loan for your business.

Additionally, anything rent is not included on a PFS, because the asset is not owned by the individual. An example of this is rent on office space. However, if you own office space and rent it out to someone else, the rent you collect is considered income and would be included in a personal financial statement.

Other things that are not included on a PFS include small personal property assets such as furniture and household goods. While they may be a large expense, they are not typically valuable enough to qualify as an asset.

Example of a Personal Financial Statement

Now that you understand what a personal financial statement is and why it’s important, let’s look at an example. Take, for example, Lisa who is a young professional and wants to start planning for retirement. She has started saving with her company’s 401(k) match , purchased her first home and has a car that she loves. However, she wants to be sure that she is set up well for retirement, so her financial advisor has asked her to prepare a PFS to understand where she stands currently.

Lisa’s home is worth $200,000, and the car she drives is worth $30,000. After several years of working hard, she has $60,000 in investments and 401(k) funds and she keeps about $5,000 in an emergency fund . Her assets total $295,000.

For liabilities, she owes $150,000 on her home, $10,000 on her car and she has about $3,000 in credit card debt. She pays the minimum balance or payment on each liability each month. Her liabilities total $163,000.

Her assets are worth $295,000 but she owes a total of $163,000. Therefore, when we subtract her liabilities from her assets, her net worth is $132,000.

Bottom Line

A personal financial statement is a common starting point for people who are looking to invest or borrow money. It helps both the individual and the financial institution understand the person’s financial responsibility and what his or her options are moving forward. A financial advisor can also help you make educated decisions regarding your assets, liabilities and wealth creation.

Tips for Building a Personal Financial Statement

• Consider talking to a financial advisor about creating your own personal financial statement. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now .
• Part of getting your personal finances in order is to be aware of common misconceptions about the subject. Knowing the ones that appear most frequently will help you avoid such mistakes. If one of your personal financial goals is stability, be sure to follow the 10 most important steps to that goal.

Photo credit: ©iStock.com/ andresr , ©iStock.com/utah778, ©iStock.com/sureeporn

Original text

Why All Small Business Owners Need a Personal Financial Statement

Running a small business is exhilarating, demanding and often a blur of financial uncertainty. While most entrepreneurs focus on their business’s bottom line and keep their financial statements current, they often neglect to document their personal finances. That’s wrong. Every small business owner needs to create a personal financial statement (PFS), which serves as a personal balance sheet, documenting your assets, liabilities and net worth. 

When do you need a personal financial statement?

Many small business owners may need a loan or other outside financing as they grow their companies. That usually requires providing a lot of documentation to the lender. But lenders don’t only want to see your business finances. Most require a personal financial statement as well.

If you decide to pledge personal assets as collateral, lenders definitely want to know the details about those assets. Financial institutions may wish to conduct a fiscal health evaluation of your personal finances so they can assess how well you manage money. For instance, if you have few assets and a lot of outstanding debt, it can indicate you would have trouble repaying a loan.

Are you thinking of buying an existing business or a franchise? The business owner, broker and/or franchisor will ask for a PFS as evidence that you’re financially able to purchase the business or franchise.

If you plan to rent a commercial office, retail space, or other types of business space, the landlord will likely request a personal financial statement before approving your lease.

As you can see, there are numerous reasons you need a PFS. It’s smart to prepare yours now (and keep it updated) so it will be ready when needed.

Personal financial statements are financial snapshots offering numerous benefits.

Beyond simply tracking your assets and liabilities, a PFS offers several vital benefits for entrepreneurs. Creating your PFS is like getting a checkup, except the result is a fiscal health evaluation rather than a physical one.

Some of the benefits of preparing a personal financial statement (sometimes called a personal financial summary):

•   Securing funding: As we already noted, when seeking loans for business expansion, new equipment or company vehicles, lenders rely on your PFS to assess your creditworthiness and ability to repay. A strong PFS significantly increases your chances of securing favorable loan terms and interest rates.
• Understanding your net worth: Your PFS provides a clear picture of your overall financial standing, including your assets (cash, investments, property) and liabilities (debt, loans, mortgages). Seeing a comprehensive view helps you make informed decisions about investments, savings goals and risk management.
• Making prudent financial decisions: With a clear understanding of your income, expenses and debt obligations, you can make informed choices about spending, investments and financial planning. Your PFS empowers you to avoid impulsive decisions and build a solid financial foundation.
• Monitoring progress and adapting: Regularly reviewing your PFS allows you to track your progress toward your financial goals and identify areas for improvement. This ongoing review process enables you to pivot, adapt, and adjust your strategies as your business and personal circumstances evolve.

What's included in a personal financial statement?

A typical PFS is divided into two main sections—assets and liabilities.

List of assets

• Current Assets include cash, checking and savings accounts, certificates of deposit, short-term investments and accounts receivable.
• Investment Assets include stocks, bonds, mutual funds and retirement accounts (IRAs, 401(k)s).
• Fixed Assets include real estate holdings and personal property, such as jewelry, cars and other items of significant value (art collection, first editions of books, etc.)

List of liabilities

• Current Liabilities include credit card debt, outstanding bills and short-term loans.
• Long-term Liabilities include mortgages, car loans, student loans and personal loans.

Do not include business assets or liabilities in your personal financial statement.

Creating your financial snapshot

You don’t need to be a financial wizard to create a PFS. Here’s how:

• Gather your documents: Collect bank statements, investment account statements, loan documents and receipts for major purchases.
• Choose a format: You can use an online template, spreadsheet or pen and paper. Choose the best format for you and ensure consistency for future updates.
• List your assets: Identify and value all your assets using current market values for investments and real estate.
• List your liabilities: Include all your debts, noting the remaining balances and interest rates.
• Calculate your net worth: Subtract your total liabilities from your assets to determine your net worth. While this is part of your overall personal balance sheet, you should keep this calculation as a separate net worth statement.
• Review and update regularly: Your PFS is not static. Update it regularly, ideally quarterly, to reflect changes in your financial situation.

When creating your personal financial statement, it’s critical to be honest and accurate. This wealth assessment is for your own benefit to help you (and lenders) make informed decisions. No one is judging you.

A PFS helps you take ownership of your personal finances and equips you with the knowledge and confidence to navigate the challenges and reap the rewards of entrepreneurship. A healthy business rests on a solid personal financial foundation.

If navigating financial statements feels overwhelming, consider consulting with a financial advisor, accountant or SCORE mentor .

National Bankers Association Foundation

The National Bankers Association Foundation’s mission is to eliminate the racial wealth gap by ensuring underserved communities have fair access to transformative financial education, services, and resources. To accomplish this, we support the work of Minority Depository Institutions (MDIs) through our four strategic pillars, which include: Financial Education, Entrepreneurship and Small Business, Research and Impact, and Collaboration and Capacity Building.

Copyright © 2023 SCORE Association, SCORE.org

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

• Search Search Please fill out this field.

Financial Planning

• Definition and Examples

How Does a Personal Financial Statement Work?

Do i need a personal financial statement.

Xavier Lorenzo / Getty Images

A personal financial statement is a physical snapshot of your assets compared to your liabilities. It gives you a real-time view of your wealth and helps you assess your current financial situation. While it's beneficial for your own financial growth, lenders may ask for a personal financial statement if you’re applying for a loan

Key Takeaways

• A personal financial statement is a document that lists all your assets, liabilities, and resulting net worth.
• Personal financial statements can be used by individuals and businesses.
• A personal financial statement is important because it shows you if you’re building wealth, and can play a critical role in helping you get approved for loans.
• The most efficient way to keep your personal financial statement up-to-date is to use budgeting software that tracks your net worth for you.

Definition and Examples of a Personal Financial Statement

A personal financial statement is a physical snapshot of your assets compared to your liabilities . It gives you a real-time view of your wealth and helps you assess your current financial situation. While it's beneficial for your own financial growth, lenders may ask for a personal financial statement if you’re applying for a loan

But what are assets and liabilities? Your assets refer to all items you can easily convert to cash, including:

• Bank accounts
• Retirement accounts
• Investment balances
• Real estate
• Personal property with significant value, such as rare art collections, coin collections, antiques, and jewelry

Your liabilities refer to all the debt you owe. They can be:

• Student loans
• Credit card debt
• Car and boat loans
• Loans where you’re the co-signer
• Unpaid taxes
• Medical debt

If your total assets are higher than your liabilities, your personal financial statement reflects a positive net worth . This is a sign that you’re building wealth and signals to lenders that you may be a trustworthy borrower.

If your liabilities are higher than your assets, however, you have a negative net worth. This signals you may be living paycheck to paycheck or spending more than you earn, and you could be seen as a high-risk borrower to lenders.

If you are in a committed partnership or married and share assets, you and your partner can combine assets and liabilities to create a joint personal financial statement.

Suppose you have $200,000 worth of assets. This includes your house, a bank account, and a retirement account. Now let’s say you have $130,000 in liabilities. This includes your mortgage, some student loans , and credit card debt. In this case, your net worth is $70,000.

Here’s an example of how your personal financial statement may look in spreadsheet form:

The Balance

Your personal financial statement will be a lot more complex if you’re creating one for your business. For small business owners, the Small Business Administration (SBA) has a sample personal financial statement you can use as a guide.

Wealth is not defined by the income you accumulate, but by your net worth. A personal financial statement is important because it shows if your net worth is improving or decaying over time. It sheds light on your entire financial picture so you can see if you’re moving closer or farther away from your goals .

For example, suppose your financial goal is to retire early . You’ve officially paid off your debt (minus your mortgage), but you’re not sure how close you are to reaching your retirement goals. You decide to create a personal financial statement to see where you stand.

Below is a guide to how you would fill out your personal financial statement, using the above example.

Step 1: List All Your Assets

Most assets have a clear dollar value (i.e., you can look in your bank account and see what your balance is). But some assets—such as your car, home, or an art collection—may require an appraisal first.

If you’re creating a personal financial statement for a lender, it’s important to be as accurate as possible (and get an appraisal if you’re unsure of the amount). But if it’s just for your own personal records, an educated guess may be fine. This may look like:

• $600,000 in your home
• $150,000 in your 401(k)
• $125,000 in your investment account
• $40,000 in your checking and savings accounts
• $30,000 in your traditional IRA
• $5,000 for your car

Total assets = $950,000

Anything you rent does not count as an asset because you don’t own it. So if you rent a house or lease a car, leave it off your personal financial statement.

Step 2: List All Your Debt 

Your debts are your liabilities. In this example, we’ve stated you’ve paid off all your debt except your mortgage, so that’s the only thing listed here.

• $300,000 on your mortgage

Total liabilities = $300,000

If you pay your credit card bill off in full every month, it’s not considered debt, so don’t include it on your personal financial statement.

Step 3: Subtract the Two Numbers To Get Your Net Worth

In this example, when you subtract the assets from your liabilities, you see that your total net worth is $650,000.

Now, suppose you know you need $1.2 million to reach financial freedom and retire early. Your personal financial statement would show that you’re $550,000 away from your goal. You could then update it again next month to track your progress, and make changes to your spending and saving as needed.

Personal financial statements help individuals understand the overall state of their personal or business finances, and calculate their net worth. They can also be used as a tool when applying for credit such as a mortgage, personal loan, or business loan . To get a snapshot of your financial health, it’s a good idea to create a personal financial statement.

Even if you have a positive net worth, it is not guaranteed you will receive a loan you apply for. Credit history and past debts are also taken into consideration by lenders.

The biggest drawback of personal financial statements is that it’s a frozen snapshot of your financial health at any given time. For it to have a positive impact, you have to update it regularly.

The good news is that there are many online tools you can use to automate your personal financial statement. Two popular options include:

• You Need a Budget (YNAB) : This is a personal finance software with strong financial budgeting features that can automatically track your assets and liabilities for you. As you earn income and pay off debt, your net worth updates in real time.
• Personal Capital : This tool for tracking your net worth acts as more of a wealth management tool, praised for helping you track and optimize investments and spot ways to diversify and manage risk. It connects with more than 14,000 financial institutions and provides a moving snapshot of your net worth.

Clearview Credit Union. " What Is a Personal Financial Statement? " Accessed Oct. 28, 2021.

Personal Capital. " Our Mission: We Transform Financial Lives Through Technology and People ." Accessed Oct. 28, 2021.

Answers to your questions, faster

What are you looking for?

Getting Started

How to Create your Own Personal Financial Statement—and Why You Want One

A personal financial statement gives you a clear idea of how you’re doing financially at any point in time. it's also a great tool to bring with you when applying for a loan..

Before you start any journey, you need to know where you are. That’s exactly what a Personal Financial Statement is for—it’s a snapshot of your personal financial position at a specific point in time. A step up from a spending plan, it lists your assets (what you own), your liabilities (what you owe) and your net worth (your liabilities subtracted from your assets). Understanding where you are now means you can set future goals and create a plan to get you there. A personal financial statement can also be a great tool when you’re ready to apply for a loan or mortgage.

First, list all of your assets which include (but aren’t limited to):

Your cash: The total balance of your checking accounts, savings accounts and any cash on hand.

Your retirement accounts: Include your 401k and your IRA, if you have them.

Value of significant assets: These are your bigger assets and usually include items like a car, real estate, life insurance policies, material property, and jewelry. Some item values may be variable, so be sure to check in and update those numbers from time to time.

Real Estate: Any piece of real estate or personal property that you own. Specify what type of property it is, the date it was purchased, and its original cost and present market value. You should also include the name and address of each mortgage holder (even if it’s you), each mortgage account number, the balance and status of each mortgage, as well as the amount of money paid against each mortgage every month or year.

Life insurance: List your beneficiaries, insurance company details, and the face amount and cash surrender value of each policy.

Accounts and notes receivable: "They Owe You’s"—any debts or payments that are personally owed to you.

Then, add up the liabilities:

Unpaid taxes: Back taxes, not estimates.

Total real estate mortgage owed, if applicable.

Money you owe institutions: List money you owe to any institution that loaned money to you, such as personal or student loans.

All unpaid accounts: Create an itemized list of open credit card balances or other unpaid accounts. Be sure to list the amount owed and interest impacts.

Unpaid installment accounts: This item will have two lists: one for auto payments and one for any other payments made in installments—but NOT mortgage payments as they should be listed separately.

Life insurance loan, if you have one.

Contingent liabilities: These are kept separate from normal liabilities because they are, in a sense, not your sole responsibility. List any liabilities you have accrued through endorsement or co-creation of, say, a business, as well as any other special debts such as legal claims or responsibilities and income tax provisions on the federal level.

Notes payable to banks and others: List the names and addresses of people and institutions to whom you owe money (the “Noteholders”), as well as original debts, current remaining debts, child support, and the amounts and frequencies of payment installments.

The total sum of all liabilities: Remember, this number must be accurate because you’ll subtract it from your assets to calculate your net worth.

Final math time: Your Assets - Your Liabilities = Your Net Worth

You’re leaving firsttechfed.com and entering a website that First Tech does not control. Payments made through ACI Payments, Inc. are processed by ACI Payments, Inc. and credited to your account at First Tech. All associated fees are charged by ACI Payments, Inc. We have provided this link for your convenience, but we’re not responsible for the content, links, or the privacy or security policies of this website.

Personal Cash Flow Statement

Personal balance sheet, bringing them together, the bottom line.

• Personal Finance
• Budgeting & Savings

Evaluating Your Personal Financial Statement

Tips to help with budget planning and figuring your net worth

Many individuals look at their bank and credit card statements and are surprised by how much they've spent. One simple method of accounting for income and expenditures is to keep personal financial statements just like the ones used by corporations. Financial statements provide you with an indication of your financial condition and can help with budget planning. There are two types of personal financial statements: the personal cash flow statement and the personal balance sheet .

• You can create your own personal financial statements to help with budget planning and to set goals for increasing your net worth.
• Two types of personal financial statements are the personal cash flow statement and the personal balance sheet.
• The personal cash flow statement measures your cash inflows or money you earn and your cash outflows or money you spend. This determines if you have a positive or negative net cash flow.
• A personal balance sheet summarizes your assets and liabilities to calculate your net worth.

A personal cash flow statement measures your cash inflows and outflows to show you your net cash flow for a specific period. Cash inflows generally include:

• Interest from savings accounts
• Dividends from investments
• Capital gains from the sale of financial securities like stocks and bonds

Cash inflow can also include money received from the sale of assets like houses or cars. Your cash inflow essentially consists of anything that brings in money.

Cash outflow represents all your expenses regardless of size. Cash outflows include these types of costs:

• Rent or mortgage payments
• Utility bills
• Entertainment, such as books, movie tickets, and restaurant meals

The purpose of determining your cash inflows and outflows is to find your net cash flow. Your net cash flow is simply the result of subtracting your outflow from your inflow. A positive net cash flow means that you earned more than you spent and you have some money left over from that period. A negative net cash flow shows that you spent more money than you brought in.

A balance sheet is another type of personal financial statement. A personal balance sheet provides an overall snapshot of your wealth at a specific period in time. It's a summary of your assets or what you own and your liabilities or what you owe. It results in your net worth : your assets minus liabilities.

Your Assets

Assets can be classified into three categories:

• Liquid Assets: These are things you own that can easily be sold or turned into cash without losing value. They include checking accounts, money market accounts, savings accounts, and cash. Some people include certificates of deposit (CDs) in this category but the problem with CDs is that most of them charge an early withdrawal fee, causing your investment to lose a little value.
• Large Assets: Large assets include houses, cars, boats, artwork, and furniture. Make sure to use the market value of these items when you're creating a personal balance sheet . You can use recent sales prices of similar items if it's difficult to find a market value.
• Investments: Investments include bonds, stocks, CDs, mutual funds , and real estate. You should record investments at their current market values as well.

Your Liabilities

Liabilities are what you owe. They include current bills, payments still owed on some assets like cars and houses, credit card balances , and other loans.

The "debt avalanche" and the "debt snowball" are two popular methods for paying off liabilities such as credit card debt.

Your Net Worth

Your net worth is the difference between what you own and what you owe. This figure is your measure of wealth because it represents what you own after everything you owe has been paid off. You owe more than you own if you have a negative net worth.

You can increase your net worth by increasing your assets or decreasing your liabilities. You can increase assets by increasing your cash or increasing the value of any asset you own. Just make sure that you don't increase your liabilities along with your assets.

Your assets will increase if you buy a house but your liabilities will also increase if you take out a mortgage on that house. Increasing your net worth through an asset increase will only work if the increase in assets is greater than the increase in liabilities. The same goes for trying to decrease your liabilities. A decrease in what you owe has to be greater than a reduction in assets.

Personal financial statements give you the tools to monitor your spending and increase your net worth. They're not just two separate pieces of information. They work together.

Your net cash flow from the cash flow statement can help you in your quest to increase your net worth. You can apply the money to acquiring assets or paying off liabilities if you have a positive net cash flow in a given period. Applying your net cash flow toward your net worth is a great way to increase assets without increasing liabilities or to decrease liabilities without increasing assets.

What Are Some Examples of Non-Liquid Assets?

Non-liquid assets are those that you can't sell or dispose of quickly if you need cash. Real estate, automobiles, artwork, and jewelry are all non-liquid assets. They can also lose value in the sales process. You might purchase your home for $350,000 and then have to sell it for only $300,000 if you find yourself in an emergency where you have to liquidate assets as quickly as possible to raise cash.

How Much Does the Average American Spend a Year?

The U.S. Bureau of Labor Statistics reported in September 2023 that average annual expenditures per household were $72,967 in 2022. This was up 9% from the year before. Average income before taxes increased only 7.5% during the same timeframe.

How Much Money Should I Have in Savings?

It's been said that you should save six months' worth of living expenses tucked away but the U.S. Securities and Exchange Commission puts a slightly different spin on that. It says you should have six months' worth of income saved. That works out to $30,000 if you earn $60,000 a year.

The SEC also suggests that you might want to consider paying off your high-interest credit card debt to amass some savings rather than invest your money, hoping to earn some. You might find that the amount you're saving on interest is more than a safe investment such as a money market or mutual fund would pay you in a given period.

Approach your finances like a financial advisor during your annual review . If you have a negative cash flow or you want to increase positive net cash flow, the only way to do it is to assess your spending habits and adjust them as necessary. You'll be well on your way to greater financial security if you use your personal financial statements to become more aware of your spending habits and your net worth.

Cornell Law School Legal Information Institute. " Liquid Asset ."

U.S. Bureau of Labor Statistics. " Consumer Expenditures—2022 ."

U.S. Securities and Exchange Commission. " Financial Navigating in the Current Economy: Ten Things to Consider Before You Make Investing Decisions ."

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

How to Create a Personal Financial Statement + [Free Template and Sample]

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure  here .

Do you want to create a personal financial statement, but aren’t sure where to start?

According to Mint.com , over 65% of people have no clue how they spent money last month. So, you can probably be pretty sure even less know how their personal finance situation.

With rising costs for essentials like housing and education due to inflation, there is no better time to get an accurate picture of your current situation today.

If you’re wondering how your finances measure up, a Personal Financial Statement can be an invaluable tool in helping you understand where you stand financially and prepare for changes ahead.

This article will walk through creating a sample personal financial statement template with examples of what this document might look like based on your situation.

A personal financial statement isn’t just for your loan applications anymore, it’s an opportunity for transparency in your finances too!

What is a personal financial statement?

A personal financial statement is a document that summarizes your assets, liabilities, and net worth. A PFS can help you understand your financial health so you can make informed decisions about your money.

A personal financial statement template will typically include three sections:

• Assets: This section will list all of the money and property you own.
• Liabilities: This section will list all of the money you owe.
• Net Worth: This section will calculate your net worth by subtracting your total liabilities from your total assets.

Your personal financial statement should be updated on a regular basis, typically once a year. This will help you track your progress and make sure you’re on track to reach your financial goals.

What are the benefits of creating a personal financial statement?

There are many great benefits of a personal financial statement.

By creating a personal financial statement, you can see at a glance how much money you have coming in, going out, and what your net worth is. This information can be extremely helpful in making financial decisions and setting goals.

Benefit #1 – Understand Your Financial Situation

This is why you must spend the extra couple of minutes to create a personal financial statement form.

Most importantly, you get a better understanding of your financial situation. This includes seeing where your money is going each month and how much debt you have.

What we call around here at Money Bliss – the 1000-foot look from above. The outsider’s perspective of what is going on with your finances.

Benefit #2 – Helps you track your progress

When it comes to personal finance, one of the best things you can do is keep track of your progress.

Tracking your progress should be important to you! By seeing everything laid out in front of you, it becomes much easier to make informed financial decisions that will help improve your overall financial picture.

Benefit # 3- Find some areas of improvement

Since a personal financial statement is a document that summarizes your income, expenses, assets, and liabilities in one place it helps you see the financial big picture. Thus, spotting areas for improvement are easier.

For example, if you see that you are spending too much money on non-essential items, you can make changes to improve your financial health.

Benefit #4 – Useful Tool to Set Goals

Next, it can help you set goals. Once you see where you stand financially, you can set goals for paying off debt or saving more money each month.

This aids you to make better financial decisions by providing a clear picture of your financial situation.

Benefit #5 – Snapshot to help you stay motivated

Creating a personal financial statement can be incredibly helpful in staying motivated to save money and achieve your financial goals. Seeing your progress in black and white (or, more accurately, green and red) can be a strong motivator to keep going.

Using a personal finance statement is especially helpful if you’re working towards paying off debt or saving for a specific goal. It can be difficult to stay motivated when you’re not seeing progress, but seeing the numbers going down (or up) can give you the boost you need to keep going.

Benefit #6 – Monitor your financial health

Creating a personal financial statement can help you monitor your financial health and make informed decisions about your spending and saving habits.

• If you see that your expenses are consistently exceeding your income, for example, you may need to make some changes to ensure that you are able to meet your long-term financial goals.
• Easier to spot opportunities to save money or invest in assets that will grow in value over time.

Monitoring your financial health on a regular basis can help you avoid debt problems and keep track of your progress toward financial goals.

What are the types of personal financial statements?

A personal financial statement is a form or spreadsheet detailing a person’s overall financial health. This statement is typically used to apply for business loans or other forms of financing. There are two types of personal financial statements:

• The first type is the balance sheet, which lists a person’s assets and liabilities.
• The second type is the income statement, which details a person’s income and expenses.

The balance sheet provides an overview of a person’s financial situation at a particular point in time, while the income statement shows how much money a person has coming in and going out over a period of time.

Both types of statements are important in helping lenders evaluate a borrower’s ability to repay a loan. As well as for you to monitor your personal situation.

What are the components of a personal financial statement?

A personal financial statement is not just a document that shows how much money you have in your bank account. It also includes other important components to show a well-rounded picture.

Most people know that a personal finance statement includes income, assets, and liabilities. But did you know there are actually four main components of a personal financial statement?

A personal financial statement varies from a traditional balance sheet that is used for a company.

Your income is everything you earn in a year from all sources, including your job, investments, alimony, and more.

You should list all of your sources of income on your personal financial statement so you have a clear picture of what you’re bringing in each month.

• Include all sources of income, even if they are irregular or one-time payments.
• List after-tax income.
• If you are married or have a partner, include their income as well.
• Update your income regularly to reflect any changes (e.g., new job, raise, bonus).

This will help you make informed decisions about your spending and saving.

This is the money you spend each month on things like your mortgage or rent, car payments, groceries, and other necessary expenses.

Here are over 100 personal budget categories for various expenses.

Assets are everything you own like your home equity or the value of your car and can use to pay your debts. This includes cash, savings, investments, property, and possessions.

Calculate your total assets by adding up the value of all your cash, savings, investments, property, and possessions.

So, is a car an asset ? Well it depends if there is a loan against it.

Liabilities

Your liabilities are everything you owe money on. This includes, but is not limited to:

• Any other personal loans

Your liabilities also include any money you may owe in taxes.

How to create a personal financial statement – Part 1

There are a few key things you need to know in order to create a personal financial statement.

The first part includes what is needed for your net worth – assets and liabilities. The second part includes your current income, expenditures, and savings.

We will show you next how to collect all of this information, then you can start to work on creating a personal financial statement.

Step #1 – Determine your current assets and business profit

The first is your current assets. Your assets are everything you own and can use to pay your debts. This includes your savings, your home equity, and any investments you have. You will need to know the value of all of these things in order to create an accurate personal finance statement.

To determine the value of your assets, start by looking at your savings. This can be any money you have in the bank, including checking, savings, and money market accounts. Add up the total balance of all these accounts to get your total savings.

Next, determine the value of your home equity. This is the difference between what your home is worth and how much you still owe on it. To calculate this, look up the current value of your home and subtract any outstanding mortgage or other loan balances from it. This will give you an estimate of how much equity you have in your home.

Finally, add up the values of any investments you have. These can include stocks, bonds, mutual funds, and other types of investment accounts. Once you have all these values totaled up, this will give you an estimate of your current assets.

Step #2 – Determine your current liabilities

Your current liabilities are all of the debts and financial obligations that you currently have.

This can include things like credit card debt, car loans, student loans, and any other type of loan that you are currently paying off.

To get an accurate picture of your current liabilities, you will need to gather up all of your bills and statements so that you can see exactly how much you owe.

Step #3 – Determine your net worth

Your net worth is your assets – your savings, your home equity, and your stocks and investments – minus your liabilities. To calculate it, simply subtract your total liabilities from your total assets. This will give you your net worth.

Your net worth is a good indicator of your financial health.

It can help you make decisions about saving and investing, and it can also be a useful tool for budgeting. If you want to improve your financial health, focus on increasing your net worth by saving more money and investing in assets that will grow in value over time.

Your goal is to double your liquid net worth quickly.

How to create a personal financial statement – Part 2

Now, you have developed your next worth statement. The next step in creating a personal financial statement is to determine your monthly cash flow of money or annual cash flow.

This second part includes your current income, expenditures, and savings.

Step #1 – Determine your monthly income

Firstly, you will need your income flow section. This could come from your pay stubs, or if you are self-employed, your profit and loss statements.

Your monthly income includes all money that you earn in a month, including salary, wages, tips, commissions, child support, alimony, and any other regular payments that you receive.

Step #2 – Determine your monthly expenses

The next piece is to determine your monthly expenses. This includes things like your mortgage or rent, car payments, credit card bills, and any other regular expenses. You’ll also want to factor in occasional expenses, like doctor’s appointments or annual membership fees.

Your expenses can be divided into two categories: fixed and variable.

Fixed expenses are those that remain the same each month, such as rent or mortgage payments, car insurance, and minimum credit card payments. Variable expenses change from month to month and can include items such as groceries, utility bills, entertainment, and clothing.

Step #3 – Determine your monthly savings

Typically, most advice will leave out monthly savings. However, this. is a critical piece to learning how to FI – financial independence.

Once you have both your income and expense information, you can begin to calculate your monthly savings. To do this, simply take your total income and subtract your total expenses. The remaining amount is what you have available to save each month.

Maybe you just calculated this and realize you have a negative number (meaning you spend more than you earn each month), then you will need to make some changes in order to improve your financial situation.

It is important to note that a personal financial statement is not static.

Your income and expenses can change from month-to-month, so it is important to recalculate your statement on a regular basis. Additionally, as you begin to save more money each month, the amount available for savings will increase as well.

How to use a personal finance statement template

A personal financial statement is a snapshot of your financial health at a given point in time. It lists your assets, liabilities, and net worth so you can see the big picture of your finances.

You can use a personal finance statement template to track your progress over time and make changes to improve your financial health.

Here’s how to use a personal finance statement template:

• Enter your information into the template. This includes details about your income, expenses, debts, and assets.
• Review your numbers and calculate your net worth. This is the difference between your total assets and total liabilities.
• Watch for comparisons. Compare your net worth from one period to another to track your progress over time.
• Make tweaks. Make changes in areas where you want to improve, such as increasing savings or paying down debt.
• Repeat steps 1-4 periodically . Then you can see how well you’re doing and make necessary changes

How to interpret a personal finance statement

A personal financial statement is a document that shows your current financial health. It lists your assets and liabilities, giving you a clear picture of your net worth.

• Positive net worth means you have more assets than debt.
• Negative net worth means you have more debt than assets.

Your personal financial statement will help you to set financial goals and track your progress over time. For example, if you want to become debt-free within five years, you can use your statement to create a budget and track your progress each year.

If you have a negative net worth, don’t panic! You can improve your financial health by paying off debts and building up your savings.

Creating a budget will help you make the most of your income and make headway on your financial goals.

How to use a personal financial statement to make financial decisions?

This is the important piece of becoming a millionaire.

A personal financial statement can help you see where your money is going each month and make changes to ensure that you are saving enough for your future goals.

Way #1 – Look at your current financial situation

Your personal financial statement is a record of your income and expenses over a period of time. This information can be used to make financial decisions, such as whether to save money or invest in a new business venture.

If you are looking to save money, you will want to compare your total income to your total expenses. If your expenses are greater than your income, you will need to find ways to reduce your spending. You may also want to consider investing in a savings account or retirement fund.

If you are looking to invest in a new business venture, you will want to assess your current financial situation. You will need to determine how much money you can afford to invest and whether or not the venture is likely to be successful.

Doing this analysis before making any decisions can help you avoid making costly mistakes.

Way #2 – Determine your financial goals

There are a few key things to keep in mind when you’re determining your financial goals.

First, you need to think about your short-term and long-term goals.

• Your short-term goals might include things like saving up for a down payment on a house or car or paying off high-interest debt.
• Your long-term goals might include things like saving for retirement or sending your kids to college.

Once you’ve determined your goals, you need to think about how much money you’ll need to reach them. This is where a personal financial statement can come in handy.

This information can help you figure out how much money you have available to put towards your financial goals.

Once you have an idea of how much money you need to reach your financial goals, the next step is to develop a plan for how you’re going to save that money. This might involve setting up a budget and sticking to it, investing in a specific savings account or investment account, or taking advantage of employer matching programs if they’re available.

Making smart financial decisions is important for achieving both your short-term and long-term goals. A personal financial statement can help you determine how much money you need to reach your goals, and develop a plan for saving that money.

Way #3 – Make a budget

Your personal financial statement can be a helpful tool when you’re trying to make a budget. This document lists your income and expenses and can give you a clear picture of your financial situation.

To use your personal financial statement to make a budget:

• Look at your overall income and expenses. This will give you an idea of where your money is going each month.
• What are Necessary Expenses? Determine which expenses are necessary and which ones you can cut back on.
• Prioritize your List. Make a list of your monthly income and expenses, with the necessary expenses first. And drop the expenses at the bottom of the list.
• How Much is Left? Determine how much money you have left over each month after paying for necessities. This is the money you can use for savings or other goals.
• Adjust your budget as needed based on changes in your income or expenses.

Way #4 – Invest in yourself

There are a lot of things you can do to invest in yourself, but one of the smartest things you can do is to invest in your personal finance education.

In fact, one of the popular millionaire quotes from Warren Buffet is :

Invest in yourself as much as possible. Warren Buffet

Investing in yourself is one of the smartest things you can do.

Way #5 – Stay disciplined

Making financial decisions can be difficult, but if you have a personal financial statement, it can help you stay disciplined.

A personal financial statement is a document that shows your income, expenses, and assets. It can help you track your spending and see where you can save money. That my friend is black and white information.

Making financial decisions can be difficult, but if you have a personal financial statement, it can help you stay disciplined and on track.

What are some common mistakes to avoid when creating a personal finance statement?

There are many common mistakes people make when creating a personal financial statement. This can lead to an inaccurate picture of your financial situation and make it difficult to make informed decisions about your finances.

Any of these common mistakes can also lead to problems down the road because you will be unable to meet your financial obligations.

• Not including all sources of income
• Not including all debts and expenses
• Forgetting to track new sources of income
• Overstating or understating expenses
• Not properly categorizing expenses
• Forgetting to update (or review) the statement regularly
• Not tracking progress over time
• Too scared to seek professional help if needed.

By avoiding these common mistakes, you can create a personal financial statement that accurately reflects your financial situation and helps you make better decisions about your money.

How often should a personal finance statement be updated?

You should update your personal finance statement at least once a year.

However, you may want to update it more frequently if you have significant changes in your income or expenses. For example, you may want to update your personal finance statement after you get a raise or buy a new car.

A Personal Financial Statement Template Example

A personal financial statement is a document that summarizes your financial health.

It includes information about your income, expenses, debts, and assets. This information can be used to make informed decisions about your finances.

There are many personal finance statement templates available online. Some banks and financial institutions offer their own templates. You can also find templates in our free resource library. Once you find a template you like, you can download it and fill it out with your own information.

When filling out a personal financial statement template, be sure to include accurate and up-to-date information.

This will give you the most accurate picture of your financial health. Review your statements regularly to track your progress and make changes as needed.

Time to Create A Sample Personal Financial Statement

When creating a personal financial statement, it is important to include all sources of income, not just your salary. This includes any freelance work, investments, or other forms of passive income. Additionally, make sure to include any government benefits or assistance you receive.

Excluding all sources of income will give you an inaccurate picture of your financial situation and make it difficult to create a realistic budget.

This is something you need to spend dedicated time doing to create a personal financial statement worksheet.

Over time, this wealth management tool will help you to become the next millionaire.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

There was a template offer that popped up when I first visited the page and then it disappeared. Could you please send me the spreadsheet?

You can go here to subscribe to our email list: https://moneybliss.org/email-subscribe/

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Personal Financial Statement

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on November 15, 2023

Ask a Financial Professional Any Question

Table of contents, what is a personal financial statement.

A personal financial statement is a report or set of documents that summarizes an individual's financial situation at a particular time.

It is often divided into two sections: the balance sheet and the income statement.

The balance sheet provides a breakdown of assets and liabilities, while the income statement summarizes income and expenses.

General information about an individual, such as name and address, may also be included in a personal financial statement.

Individuals can use personal financial statements to monitor their current economic situation.

What Personal Financial Statement Includes

A personal financial statement is typically divided into two sections. These are:

Balance Sheet

The financial statement contains a section known as a balance sheet, which summarizes a person's assets, including cash and investments , and liabilities like debts or loans.

The balance sheet is also used to calculate an individual’s net worth, which is the value of assets minus the amount of liabilities.

Income Statement

The next section, the income statement , details the flow of income and expenses that influences a person's financial situation.

Income statements list all sources of income, such as salaries, bonuses, and dividends .

Expenses such as insurance payments, electricity, or grocery bills are also included.

What Personal Financial Statement Excludes

A personal financial statement does not include the following items:

Company Assets and Liabilities

Company resources and debts are removed from the financial statement unless the individual has direct and personal responsibility.

When someone personally guarantees a loan for their business, the loan is included in their personal financial statement.

Loaned Items

Loaned assets are not owned, so they are not included in personal financial statements.

However, if an individual owns a property and rents it out to others, then the property's value is included in the financial statement list.

Personal Belongings

Furniture and home goods are often not shown as assets on a personal balance sheet since they cannot be easily sold to pay off a loan.

Personal goods with high monetary value, such as jewels and antiques, may be included if their worth can be shown by an evaluation.

Personal Financial Statement Example

Let us look at an example of a personal financial statement using the hypothetical case of Jeffrey.

Below is an example of what Jeffrey’s balance sheet may look like in spreadsheet form.

As shown above, Jeffrey has $295,500 worth of assets. This includes the assets like a house, a vehicle, bank accounts, and a retirement account.

Now let us say he has $101,000 in liabilities as well. This includes credit card debts, student loans and mortgages.

With this information, his balance sheet should reflect a net worth of $194,500.

Here is an example of what Jeffrey’s income statement may look like in spreadsheet form:

As shown above, Jeffrey receives a total monthly income of $14,200 and spends a total of $8,610 in expenses.

After subtracting expenses from income, Jeffrey has a net income of $5,590.

Taken together, Jeffrey’s balance sheet and income statement provide useful information about his current financial situation.

Let us look at a guide on how to create a personal financial statement.

How to Create a Personal Balance Sheet

• List All Assets

Indicate the dollar value of the assets to be declared. Accuracy is important, particularly when creating a statement for the purpose of borrowing.

Find the total value of all available assets.

• List All Debts

Liabilities come from debts. State the obligations that have to be settled and debts to be paid.

Common items include credit card debts, mortgage debts, and student loans.

Find the total value of all liabilities.

• Determine the Net Worth

Net worth is calculated by deducting total liabilities from total assets.

How to Create a Personal Income Statement

• List all Money Received from Various Sources

Determine the amount of money coming in from various sources. This usually includes regular income received monthly.

• List all Expenses

Make a list of all monthly spending. Start with fixed costs before moving to variable costs.

• Determine Net Profit or Loss

The net profit or loss can be calculated by subtracting the total monthly expenses from the total income or revenue generated in that month.

Importance of a Personal Financial Statement

Here are some reasons why it is important to create a personal financial statement.

A personal financial statement is an important tool that can be used for financial planning.

It provides a snapshot of an individual's financial situation at a particular point in time, which can be helpful in making future projections and plans.

The statement can also be used to track progress over time and to identify areas where improvements can be made.

Personal financial statements are essential when filing taxes because they summarize income made throughout the year.

They also provide an idea of possible deductions that can be made to lower an individual’s tax rate.

Loan Application

Personal financial statements are often required when applying for credit, such as a loan or mortgage .

Lenders use the information in the statement to assess an individual's ability to repay the debt and to determine the interest rate that will be charged.

In some cases, a personal financial statement may be used in lieu of a credit report when applying for credit.

Final Thoughts

A personal financial statement can be a helpful tool in managing finances and making future plans.

Personal financial statements include balance sheets to monitor assets and liabilities and income statements to track an individual’s income and expenses.

Details on the assets and liabilities related to an individual’s businesses, any rented items and personal belongings are not included in a personal financial statement.

Personal financial statements can be used for a variety of purposes, including financial planning, overviewing an individual's financial situation, and loan applications.

Personal financial statements must be updated on a regular basis to provide an accurate picture of an individual’s current economic situation.

Personal Financial Statement FAQs

What is a personal financial statement.

A personal financial statement is a report or set of documents that summarizes an individual's financial situation at a particular time.

What is included in a personal financial statement?

A personal financial statement includes information on an individual's balance sheet and income statements. The balance sheet provides a summary of assets and liabilities, whereas the income statement summarizes revenue and costs.

What is excluded from a personal financial statement?

Personal financial statements do not include details of a company’s assets and liabilities, loaned items, and personal belongings.

Why is a personal financial statement important?

It is important because it provides a snapshot of an individual's financial situation at a particular point in time. It can help to identify areas where expenses may be excessive or where there is room to make cuts in order to save money. The statement can also be used to track progress toward financial goals.

What does a personal financial statement show?

A personal financial statement shows an individual's assets, liabilities, income, and expenses. It can help to identify areas of financial strength and weakness and to track progress over time.

About the Author

True tamplin, bsc, cepf®.

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon , Nasdaq and Forbes .

Related Topics

• Articulation
• Cash Flow Analysis
• Cash Flow Management
• Cash Flow Planning
• Classified Financial Statement
• Components of the Accounting Equation
• Financial Statement Footnotes
• Financial Statement Preparation
• How to Read an Annual Report
• Interim Statements
• Multi-Step Income Statement
• Net Worth Statement
• Profit and Loss Statement (P&L)
• Single-Step Income Statement
• Statement of Changes in Financial Position
• 1040 US Individual Tax Return Form
• 1040EZ Form
• 183-Day Rule
• 90-Day Letter
• Ad Valorem Tax
• Additional Child Tax Credit
• After-Tax Income
• American Opportunity Tax Credit (AOTC)
• Capital Gains Tax Accountant
• Child Tax Credit
• Cryptocurrency Tax Accountant
• Do You Need a Tax Accountant?
• Do You Need an Accountant to File Your Taxes?

Search for Local Tax Preparers

Find advisor near you, our recommended advisors.

Taylor Kovar, CFP®

WHY WE RECOMMEND:

Fee-Only Financial Advisor Show explanation

Certified financial planner™, 3x investopedia top 100 advisor, author of the 5 money personalities & keynote speaker.

IDEAL CLIENTS:

Business Owners, Executives & Medical Professionals

Strategic Planning, Alternative Investments, Stock Options & Wealth Preservation

Claudia Valladares

Bilingual in english / spanish, founder of wisedollarmom.com, quoted in gobanking rates, yahoo finance & forbes.

Retirees, Immigrants & Sudden Wealth / Inheritance

Retirement Planning, Personal finance, Goals-based Planning & Community Impact

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.

Fact Checked

At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content.

Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications.

They regularly contribute to top tier financial publications, such as The Wall Street Journal, U.S. News & World Report, Reuters, Morning Star, Yahoo Finance, Bloomberg, Marketwatch, Investopedia, TheStreet.com, Motley Fool, CNBC, and many others.

This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible.

Why You Can Trust Finance Strategists

Finance Strategists is a leading financial education organization that connects people with financial professionals, priding itself on providing accurate and reliable financial information to millions of readers each year.

We follow strict ethical journalism practices, which includes presenting unbiased information and citing reliable, attributed resources.

Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation videos.

Our writing and editorial staff are a team of experts holding advanced financial designations and have written for most major financial media publications. Our work has been directly cited by organizations including Entrepreneur, Business Insider, Investopedia, Forbes, CNBC, and many others.

Our mission is to empower readers with the most factual and reliable financial information possible to help them make informed decisions for their individual needs.

How It Works

Step 1 of 3, ask any financial question.

Ask a question about your financial situation providing as much detail as possible. Your information is kept secure and not shared unless you specify.

Step 2 of 3

Our team will connect you with a vetted, trusted professional.

Someone on our team will connect you with a financial professional in our network holding the correct designation and expertise.

Step 3 of 3

Get your questions answered and book a free call if necessary.

A financial professional will offer guidance based on the information provided and offer a no-obligation call to better understand your situation.

Where Should We Send Your Answer?

Just a Few More Details

We need just a bit more info from you to direct your question to the right person.

Tell Us More About Yourself

Is there any other context you can provide.

Pro tip: Professionals are more likely to answer questions when background and context is given. The more details you provide, the faster and more thorough reply you'll receive.

What is your age?

Are you married, do you own your home.

• Owned outright
• Owned with a mortgage

Do you have any children under 18?

• Yes, 3 or more

What is the approximate value of your cash savings and other investments?

• $50k - $250k
• $250k - $1m

Pro tip: A portfolio often becomes more complicated when it has more investable assets. Please answer this question to help us connect you with the right professional.

Would you prefer to work with a financial professional remotely or in-person?

• I would prefer remote (video call, etc.)
• I would prefer in-person
• I don't mind, either are fine

What's your zip code?

• I'm not in the U.S.

Submit to get your question answered.

A financial professional will be in touch to help you shortly.

Part 1: Tell Us More About Yourself

Do you own a business, which activity is most important to you during retirement.

• Giving back / charity
• Spending time with family and friends
• Pursuing hobbies

Part 2: Your Current Nest Egg

Part 3: confidence going into retirement, how comfortable are you with investing.

• Very comfortable
• Somewhat comfortable
• Not comfortable at all

How confident are you in your long term financial plan?

• Very confident
• Somewhat confident
• Not confident / I don't have a plan

What is your risk tolerance?

How much are you saving for retirement each month.

• None currently
• Minimal: $50 - $200
• Steady Saver: $200 - $500
• Serious Planner: $500 - $1,000
• Aggressive Saver: $1,000+

How much will you need each month during retirement?

• Bare Necessities: $1,500 - $2,500
• Moderate Comfort: $2,500 - $3,500
• Comfortable Lifestyle: $3,500 - $5,500
• Affluent Living: $5,500 - $8,000
• Luxury Lifestyle: $8,000+

Part 4: Getting Your Retirement Ready

What is your current financial priority.

• Getting out of debt
• Growing my wealth
• Protecting my wealth

Do you already work with a financial advisor?

Which of these is most important for your financial advisor to have.

• Tax planning expertise
• Investment management expertise
• Estate planning expertise
• None of the above

Where should we send your answer?

Submit to get your retirement-readiness report., get in touch with, great the financial professional will get back to you soon., where should we send the downloadable file, great your downloadable file should be in your email soon..

In the meantime, here are a few articles that might be of interest to you:

Student Good Guide

The best UK online resource for students

Finance Personal Statement Examples

Here are two finance personal statement examples from some of the best students in undergraduate and postgraduate programmes. Both examples you can use as inspiration and motivation to write your own personal statement for university . 

Finance Personal Statement

Ever since I discovered my passion for the finance industry at a young age, I have been determined to pursue a career as a financial consultant and advisor. It is this unwavering ambition that has led me to apply for the MSc course in Finance at the esteemed London School of Economics and Political Science (LSE). I firmly believe that this course will provide me with the necessary tools and knowledge to achieve my career goals by expanding my understanding of financial products, the intricate workings of financial markets, and investment banking.

The reputation of LSE as a university of academic excellence is one of the key reasons for my decision to apply. I am aware of the university’s ability to equip students with critical analysis skills that are essential for becoming leaders in their chosen sectors. Moreover, being located in the heart of London provides unparalleled opportunities for networking and professional development in the world of business and finance. The course’s comprehensive approach, which strikes a balance between theoretical and practical modules, is also highly appealing to me.

My educational background in accounting has laid a solid foundation for my advanced studies in finance. Through my coursework in accounting, I have developed strong numerical skills and gained practical experience in management accounting and reporting roles within financial firms. It was during my studies that I discovered a particular interest in Strategic Financial Management, where I was introduced to financial products such as equities, derivatives, fixed income, and bonds, along with their significance in financial markets. Building on this knowledge, I have become a qualified accountant and have gained valuable work experience as an Associate at Deloitte, where I am part of the project management team, responsible for decision support. This role has honed my ability to work under pressure and within tight time constraints, allowing me to meet urgent and conflicting deadlines.

To stay up-to-date with the dynamic financial market, I avidly follow financial news through subscriptions to reputable media platforms such as the Financial Times, the Economist, and Bloomberg. Additionally, I engage in various hobbies such as travelling, watching movies and documentaries, and reading to broaden my knowledge and stay informed about current affairs. As a sports enthusiast, I follow tennis, football, boxing, and Formula One racing. These diverse interests have cultivated qualities such as ambition, intuition, focus, and self-discipline, which drive me to excel in any endeavour. I value the input and opinions of others, making me an effective team player, while also possessing the independence and initiative to work autonomously. I firmly believe that these qualities will contribute to my success as a finance analyst and enable me to excel academically.

Looking toward the future, I aspire to establish a reputable financial consulting firm in my home country, Nigeria. This firm would provide a range of financial services to both companies and public institutions. I recognise that achieving this goal will require years of experience, cultivating the right connections, and personal determination. Pursuing an MSc in Finance from LSE will better equip me to manage corporate, strategic, and financial opportunities, while also providing the opportunity to learn from talented professors and compete with exceptional graduates. I am convinced that this course is a crucial step toward realizing my long-term aspirations.

The increasingly evident impact of financial risk on our world has captivated my interest like never before. The interplay between the financial sector, government, and the general public dominates news stories, emphasizing the significance of understanding the industry. With my passion for finance nurtured from an early age, I have dedicated myself to attaining a comprehensive understanding of both the theoretical and practical aspects of global finance through high-level studies and extensive work experience in diverse industrial and international contexts.

Currently, in my fourth year of a degree in Finance, Risk, and Investment at Caledonian University, I have developed a strong foundation of knowledge in the field. Moreover, I have delved deeper into specific areas

Finance Personal Statement Example

Since my early years, extensive international travel has shaped my perspective on the world, particularly the stark economic contrasts between the ‘Third World’ and the ‘Western World.’ Having the privilege of experiencing different cultures and economies through my parents, who have lived in Africa, Europe, and the USA, I have developed a deep curiosity about the mechanisms that drive global economies. This curiosity has led me to pursue Economics at A Level, as I believe it is at the core of world discussions and can provide a comprehensive understanding of current news articles and their correlation to the subject.

Through my readings, such as Tim Harford’s ‘The Undercover Economist,’ I have come to appreciate the analogy that economics is like engineering, offering insights into how things work and the consequences of changing them. I see economics as an intricate puzzle, requiring economists to integrate economic theories with government policies to solve complex economic problems. Attending conferences at prestigious institutions like the University of Warwick and Oxbridge has broadened my perspective on economics, with theories like Freakonomics intriguing me and sparking a desire to explore the unexpected links between seemingly unrelated phenomena.

My passion for economics is complemented by a strong affinity for mathematics , which has been nurtured since my childhood. From playing mental maths games to tackling complex problem-solving at A Level, I have developed analytical abilities that were put to the test during a taster day at Cass Business School. Through quick thinking and effective teamwork, I excelled in a trading shares simulation, resulting in my group being the most profitable. Furthermore, my participation in a business management enterprise day at the University of the West of England allowed me to showcase my skills, leading to the recognition of the ‘Best Business Idea.’

To gain practical experience in the finance sector, I sought work opportunities that would provide me with invaluable insights. My time at Britannia Building Society exposed me to the inner workings of retail banking, allowing me to shadow the branch manager, work closely with financial planning advisors, and handle transactions at the tills. This experience introduced me to financial assets, including options for investing in bonds, shares, and increasing savings. Additionally, working at Harrison’s Accountancy and Insolvency Agency gave me valuable knowledge about liquidations and insolvencies of businesses, further solidifying my interest in pursuing a career in finance.

Staying updated with current financial affairs is crucial to me, and I regularly read the economy sections of reputable sources such as the BBC website and The Economist. Subscribing to a weekly update from RBS provides me with topical developments in the financial markets. Alongside my commitment to academic and professional pursuits, I have also developed essential skills through my job at O2 Retail. This experience has sharpened my interpersonal skills and honed my ability to negotiate mutually beneficial deals for both customers and the company. As a captain of my football team, I have learned the value of leadership, motivation, and maintaining high team morale, skills that have translated into success in class debates and the trading shares simulation at Cass Business School.

During a recent trip to Switzerland, I had the opportunity to meet with the assistant vice president at Credit Suisse, who shared insights into exchange rate processes within a leading investment bank. These conversations further solidified my understanding of the close relationship between economics and the finance sector.

Through a comprehensive study of Level Economics and practical experiences, I have been able to bridge the gap between theory and real-world situations. Engaging with professionals in the field has deepened my appreciation for the vital connection between economics and finance. I am confident that pursuing a university education will equip me with the necessary knowledge and skills to navigate the dynamic and fast-paced world of financial markets.

My passion for finance and economics was sparked by the Lehman Brothers’ bankruptcy and the subsequent financial crisis when I was 21 years old. The events of that

Other Personal Statements

• Statistics Personal Statements
• PPE Oxford Personal Statement Example
• Classics Personal Statement Examples
• Theology Personal Statement Examples
• Physics Personal Statement Examples
• Chemical Engineering personal statement examples
• Oncology Personal Statement Examples
• Psychiatry Personal Statement Examples
• Earth Sciences Personal Statement Example
• History Personal Statement Examples
• Veterinary Personal Statement Examples For University
• Civil Engineering Personal Statement Examples
• User Experience Design Personal Statement Example
• Neuroscience Personal Statement Examples
• Graphic Design Personal Statement Examples
• Film Production Personal Statement Examples
• Events Management Personal Statement Examples
• Counselling Personal Statement Examples
• Forensic Science Personal Statement Examples
• Children’s Nursing Personal Statement Examples
• Chemistry Personal Statement Examples
• Sports Science Personal Statement Examples
• Mechanical Engineering Personal Statement Examples
• Electrical and Electronic Engineering Personal Statement Examples
• Quantity Surveying Personal Statement Examples
• Social Work Personal Statement Examples
• Physiotherapy Personal Statement Examples
• Journalism Personal Statement Examples
• English Literature Personal Statement Examples
• Marketing Personal Statement Examples
• Computer Science Personal Statement Examples
• Fashion Marketing Personal Statement Examples
• Dietetic Personal Statement Examples
• Product Design Personal Statement Examples
• Aerospace Engineering Personal Statement Examples

Geography Personal Statement Examples

• Business Management Personal Statement Examples
• Politics Personal Statement Examples
• Psychology Personal Statement Examples
• Oxbridge Personal Statement Examples
• Zoology Personal Statement Example
• Sociology Personal Statement Example
• Fashion Personal Statement Example
• Mathematics Personal Statement Examples
• Software Engineering Personal Statement Examples
• Philosophy Personal Statement
• International Relations Personal Statement Example
• Biochemistry Personal Statement Example
• Dentistry Personal Statement Examples
• Midwifery Personal Statement
• Law Personal Statement Example
• Medicine Personal Statement for Cambridge
• ICT Personal Statement
• Primary Teacher PGCE Personal Statement
• PGCE Personal Statement Example
• Games Design Personal Statement
• Paramedic Science Personal Statement Examples
• Occupational Therapy Personal Statement
• Pharmacy Personal Statement Example

Finance Personal Statement Examples My desire to take the MSc course in Finance at LSE stems from my keen ambition to pursue a career as a financial consultant and advisor. I am convinced this course will allow me to ultimately achieve this goal by vastly expanding my knowledge of financial productions; the complex functioning of financial markets; and investment banking. My decision to apply to study at LSE is due to the university’s record of academic excellence and its ability to equip students with the skills of critical analysis essential to becoming leaders in their chosen sectors, as well as its location at the heart London, thus providing good links with the world of business and finance and enhancing opportunities for personal and professional development. Finally, I am also drawn to the course’s holistic approach of offering a balance between theoretical and practical modules.

My background in accounting has provided me with an excellent basis from which to start my advanced studies in Finance. My strong numerical skills have led me to successfully complete a course in accounting, which has enabled me to find work in management accounting and reporting roles in financial firms. Over the course of my studies I discovered that the area of greatest interest to me was my module in Strategic Financial Management, which introduced me to financial products and concepts such as equities, derivatives, fixed income and bonds, along with their significance in financial markets. I am now a qualified accountant where my existing work experience has further exposed me to the financial industry, while also helping me to identify a core element of my career aspirations by making me increasingly aware of my desire to become more involved in strategic decision-making processes. In my current position as Associate at Deloitte, I work within the project management team in a decision support capacity. My duties include ensuring project deliverables are met within the projected cost, time and quality standards. This post has honed my ability to work and pressure and time constraints, and to meet urgent and conflicting deadlines. As a flexible individual I am able to adapt quickly to a fast-paced and challenging environment where systems, processes and procedures can change at short notice.

I keep abreast of developments and trends in the financial market through my subscriptions to various media platforms including the Financial Times, the Economist and Bloomberg. This keeps my knowledge of financial news up-to-date and relevant in a modern context. My hobbies include travelling, watching movies and documentaries, reading and staying informed of current affairs. I am also a sports enthusiast: I follow tennis, football, boxing and Formula One racing. In terms of qualities, my ambition to attain a high level of knowledge is a defining personal characteristic. My zeal is complemented by my intuition, focus and self-discipline, all of which drive me to achieve results in any activity I take part in. I value and respect the input and opinions of others, making me an excellent team-player, while also being fully able to work independently and with minimal supervision. I believe these competencies will prove useful in developing my potential as a finance analyst, as well as helping me to excel in my academic performance.

In the long term, my aspirations are to own a reputable financial consulting firm in my home country (Nigeria) which will provide a range of financial services to companies and public institutions alike. I believe this can be achieved by years of experience, building the right contacts, and through personal determination. I believe that holding an MSc from LSE would better qualify me to manage corporate, strategic and financial opportunities. Furthermore, I would have the opportunity to learn from talented professors, while competing with the very best of graduates. For these reasons, I perceive this course to be a crucial step in allowing me to attain my goals.

Personal Statement Service hopes that you have found this Finance Personal Statement Example helpful!

Economics personal statement example.

The Complete Beginner Guide to Personal Financial Statements

No one wants to be broke, living paycheck to paycheck, or struggling with money. Everyone wants to succeed with their finances. But many people struggling with their finances don’t know how their money works. If you really want to succeed in personal finance, you have to treat your finances like a business with personal financial statements.

Think of yourself like a business

Successful businesses do not just guess how they are performing, they perform detailed analyses regularly. As a corporate accountant and financial analyst for nearly a decade, I spent my work days looking into the details of products at multibillion-dollar companies. We didn’t guess how our finances worked, we understood everything from revenue sources to expenses for every product and customer.

We should take the same approach to our personal finances. In “the business of you,” you have the same concerns as any corporation. Businesses have to generate enough revenue to cover all expenses and have leftover cash to reinvest or pay owners as profit. You also need to earn each month to cover your expenses and have enough left over for savings, investments, and a little fun.

To understand how your personal business is performing, you need the same financial reports that business managers and investors use to make the best decisions. These financial statements are the balance sheet, income statement, and cash flow statement. Lucky for us, with some great, free tools at our disposal, putting together our own personal financial statements isn’t all that difficult or time-consuming.

If you follow along, you will end with your own personal balance sheet, personal income statement, and personal cash flow statement. You will have enough information at your fingertips to understand where your money comes from, where it is going, what you have, what you owe, and if you are on track to meet your financial goals.

Get your financial information in one place

To start, you need all of your financial information in one place. Some people might gather a stack of paper financial statements, but I prefer to log into one website or app and have everything quickly available. I have used similar sites since 2007, and my longtime favorite is Empower . When I log into Empower , I can view a snapshot of all of my financial accounts. I can view balances in one place, or click to view recent transactions and more account details. Take a look at a sample dashboard below.

Empower tracks my spending by category and calculates my net worth automatically. While it is incredibly useful for all of these features, and that’s why we need it today, the most powerful features focus on your investments. Empower will conduct an automatic investment analysis for every connected account. I used information on investment fees to shift to similar, lower-fee mutual funds to save over $300 per year in investment fees. Over the years, that is thousands of dollars I will have for retirement I don’t have to give away to big companies.

So start out by heading to Empower and connecting all of your bank, credit card, loan, and investment accounts. If you connect every financial account, you’ll have the big picture of your finances you need to build all of the financial statements below. Everything we’ve discussed is completely free of charge, which is awesome!

If you have more than $100,000 in investable assets, you may be contacted by Empower for additional investment services. They offer a great advising product, but you are not obligated to accept and can always use the Empower dashboard and tools for free.

Personal Financial Statements: Balance Sheet

In personal finance, we discuss our net worth or the total value of our assets fewer debts. Businesses have the exact same thing, but they call it a balance sheet. A balance sheet shows the net worth of a business, but on a balance sheet, net worth is called shareholder’s equity.

For those of us who have not taken accounting , here is a quick rundown. Assets on the left, liabilities on the right, and shareholder’s equity below liabilities. Assets + Liabilities = Shareholders Equity.

A personal balance sheet is a snapshot in time. From month to month as you earn money and spend money, your personal balance sheet changes daily. If you make a purchase on your credit card, your liabilities increase. If you get paid, your assets increase. If you buy something with cash, your assets go down. This type of change in your balance sheet happens every time you make a purchase or enter into any type of financial transaction.

How to Build a Personal Balance Sheet

I have built a monthly personal balance sheet every month since July 2008. I use a free website called NetWorthShare to track my net worth, which I do every month. I have an epic tracking page of all monthly net worth entries from 2009 to 2011 here . Thanks to the built-in charts, you can watch my net worth slowly build before grad school, drop to near zero as I finished my MBA program, and slowly climb with some real estate-related jumps.

To gather the data for my personal balance sheet, I use my account balances at Empower , the home value from RedFin , and update my car values annually from Kelley Blue Book . Here is a screenshot of my update from January 2017, before I bought my current home.

As you can see, this month my cash went down, other assets ( Lending Club loans that I cashed out) went down, and my credit card balances went way down. I pay my credit cards off in full every month but do to all of my spending on credit cards to maximize travel miles and points for free trips . My stocks and retirement balances were up thanks to a good month in the stock market, and this was the first month I started tracking my wife’s car in our net worth.

This month my net assets were up $12,297 and my debts were down $2,070. My net worth was up $14,367 for the month, or 3.60%.

I started tracking my net worth shortly after leaving college, which makes this a nearly complete view of my net worth over my career. The biggest jumps were all related to buying and selling homes. They make it seem like the big swings from grad school tuition were not so big after all!

Understanding Your Balance Sheet

Assets as a positive number plus liabilities (a negative number) give you your personal net worth. This snapshot from an earlier net worth update shows how equity fits into the balance sheet and makes the personal balance sheet look more like a business balance sheet.

Ultimately, the goal is the grow your equity, or your net worth, over time. Remember that your personal finances are a marathon, not a sprint, and you won’t see your net worth skyrocket instantly. If it was easy to get rich quickly, everyone would be rich! The chart above tracks my net worth for more than nine years!

Analyzing Your Balance Sheet

If you look at business balance sheets for public companies, you will find that most have a positive value for shareholders equity on the balance sheet, but not all. Some have a negative net worth, which is not sustainable in the long run. The same is true for our personal net worths. If you have more debts than you do assets, you have a negative net worth.

This is not uncommon. As student loans and other debt balances rise across the country, more people find themselves buried under debt owing far more than they have. If you have a negative net worth, flipping that balance from red to black should be a top priority. When you budget well and spend less than you earn, higher net worth is inevitable.

Stock analysts and financial analysts use some financial ratios to measure a business’s financial health. We can use the same math for our personal balance sheet to get a better view of your financial health. For example, the quick ratio, also known as the acid test, shows the ability to pay bills over the short term.

To calculate the quick ratio, we divide current assets over current liabilities. “Current” assets are cash and equivalents, while current liabilities are any debts owed in the next month. Large businesses use debts due within one year when calculating the quick ratio.

Using the snapshot of the balance sheet above, the quick ratio is calculated as follows: 12,768/227. In this case, the quick ratio is 56.25. That means I could cover my current liabilities 56 times with my current assets. This is a great result. A quick ratio of 1.0 means you are living literally month to month, or paycheck to paycheck. A quick ratio below 1.0 means you are dealing with immediate liquidity issues and can’t make all required payments.

While the short-term assets category for companies is anything due within a year, I am using within one month as current as that is more appropriate for a person making regular bill payments. From big swings in income or big debt payments, you can undergo a big change in a month’s time. That is why I like to track my finances every month.

Personal Financial Statements: Income Statement

Next, we are going to look at our earnings and expenses over a period of time. This is measured with the income statement or in our case a personal income statement. I actually put together an income statement every month for my business. I give a high-level view every month in my monthly income reports . An income statement is also called a profit and loss statement, or a P&L. I can view my business P&L quickly in Quickbooks .

Below is a screenshot of my business income statement for August 2017. In my regular income reports, I take out my own paycheck (included in the cost of labor) and taxes. This is the full version I use for accounting , income taxes, and financial planning.

While you could use Quickbooks for your personal finances, it may be overkill. But again, Empower has you covered. But before we look at that, let’s look at an old-school spreadsheet example I put together in Microsoft Excel. Here is a personal income statement based on a hypothetical situation. These are fabricated numbers just for this post, and any resemblance to anyone’s actual finances is purely coincidental. I made this spreadsheet publicly available here in  Google Sheets .

So, a net income is what you keep after everything you earn and spend. Your net income at the end of a time period rolls into your balance sheet as cash or assets. There is no right or wrong net income. There is only one rule, IT HAS TO BE GREATER THAN ZERO! The bigger the better. You should put that net income into savings or retirement. You could even put savings as a category under expenses or a deduction of income in the revenue section to build in your savings.

The Empower income statement is displayed as cash flow. Here is a screenshot of the expense section from Empower. When your accounts are connected, your cash flow is automatically calculated for you without doing any work!

Getting details from your income and expense category breakdown is even more helpful. You can look for opportunities to cut expenses, improve your budget , pay off debt, and boost your savings. Your personal income statement is a valuable tool. Use it to make sure you always spend less than you earn so your net worth will rise every month.

Learn More Best Budgeting Apps: Mint Alternatives

Personal Financial Statements: Statement of Cash Flow

The last major statement is the statement of cash flow. For personal financial statement purposes, this is very similar to the personal income statement, so we won’t spend as much time here as we did on the other two. However, it is still an important concept to understand.

In business, the statement of cash flow shows all cash in and out of the business broken down into three categories: operations, investing, and financing.

For personal purposes, the traditional cash flow statement breakdown is not quite as useful. However, every month we all have cash come in (hopefully) and cash goes out. At the end of the day, the accounting statements above show us what assets we have and what liabilities we owe, but not our cash position. That is what the statement of cash flow is for.

The goal here is to minimize cash outflow from operations (living expenses). You also want to see the final “Total Cash Flow” be positive, indicating a net increase in cash.

I have saved this template as another  Google Spreadsheet that anyone can access . Feel free to copy it to your own Google Drive account or into a spreadsheet file on your computer. The only cells that you need to fill in are the grey ones. Everything else is automatic.

What Do Personal Financial Statements Mean?

To wrap up this guide to personal financial statements, we will explore the results and what they really mean for your finances.

The Personal Balance Sheet gives us our liquidity position.  To analyze the information here, look at the quick ratio and acid test.  If your current assets do not meet or exceed your current liabilities, you need to make a quick change to your financial situation.

The Personal Income Statement tells you how much you make in a given period as a net income.  A high net income means you have a good income/spending gap.  A negative net income means you are spending more than you make and should make a quick lifestyle change.

The Personal Cash Flow Statement gives you a breakdown of your cash position in a period.  It is okay for you to have a negative cash flow in some instances, such as paying down debt.  If you do this for too long, however, you will end up in trouble with debt.

Stock analysts grade companies every day and give them ratings for creditworthiness and investment grade.  Compare yourself to publicly traded companies by calculating their quick ratio , return on assets , and profit margin . It is a fun exercise to see your financial health, putting you on track to living a more profitable life.

What is your stock worth? Would an investment in your business be a smart bet? Make your finances something you can be proud of. Take advantage of income from your job and side hustles . Your money should be helping you live the life you want, not holding you back.  If your personal financial statements say otherwise, it’s time to get profitable.

ACDS PUBLISHING

Understanding Personal Financial Statements: A Comprehensive Guide

Table of content, what’s in this guide, personal balance sheet, how to create a personal balance sheet, calculating and interpreting your net worth, pros of creating a personal balance sheet, personal balance sheet limitations, pro tips on creating and maintaining a personal balance sheet, personal cash flow statement, how to create a personal cash flow statement, calculating and interpreting your net cash flow, pros of creating a personal cash flow statement, personal cash flow statement limitations, pro tips on creating and maintaining a personal cash flow statement, personal balance sheet case study, personal cash flow statement case study, grab your free personal financial statement template here, the bottom line.

Financial literacy isn’t just a skill; it’s a necessity in our complex modern economy. Our financial landscape is filled with many challenges—from managing debt and investments to planning for retirement. A personal financial statement is one key financial document that makes navigating these challenges easy.

Personal financial statements, which comprise a balance sheet and cash flow statement, provide a snapshot of your financial health, allowing you to evaluate your current financial condition, track changes over time, and plan for the future. Imagine seeing, at a glance, areas where you can reduce spending, if your net worth is increasing or decreasing, or if you are on track to meet your financial goals.

That’s the kind of clarity these statements provide. They don’t just contain numbers; they provide insights into your financial health, facilitating better decisions and effective long-term planning. For example, a cash flow statement can reveal if you are spending too much on non-essential items, while a balance sheet can show if your debt is becoming unmanageable.

Additionally, analyzing these statements together provides a broad view of your financial situation, helping you identify potential issues before they become significant problems. For instance, if your cash flow statement shows a consistent surplus, but your balance sheet reveals increasing debt, that might be a sign that you are not using your surplus efficiently to pay down debt.

In this guide, we’ll walk you through the two common types of personal financial statements: the personal balance sheet and the personal cash flow statement. We’ll explain each statement, their typical line items, the benefits of creating them, and their limitations.

Finally, we’ll share some pro tips on creating and maintaining each statement, and we’ll examine two case studies that illustrate how each statement can help individuals make better financial choices. At the end of the guide, you will be able to download a free template to get you started on monitoring your finances.

Let’s dive right in.

In a hurry and can’t read this guide in one go? Download the free PDF version to read whenever you have the chance!

Download Link:  Understanding Personal Financial Statements: A Comprehensive Guide

A personal balance sheet provides a snapshot of your financial position at a specific period, typically a month or a year. It outlines what you own (assets), what you owe (liabilities), and the difference between the two, known as your net worth. Assets include your house, car, investments, and savings, while liabilities encompass debts such as your mortgage, car loan, and credit card balances.

For instance, say your assets include a $350,000 house, a $30,000 car, $80,000 in investments, $30,000 in savings, and $10,000 in other assets, totaling $500,000. On the other hand, your liabilities include a $150,000 mortgage, $20,000 car loan, $10,000 credit card debt, $15,000 student loan, and $5,000 in other debts totaling $200,000. In this scenario, your net worth would be $500,000 (Total Assets) – $200,000 (Total Liabilities) = $300,000.

Understanding, creating, and maintaining a personal balance sheet helps you make informed decisions about investments, loans, and other financial matters. For example, by knowing your net worth, you can determine how much debt you can afford for a new home or car, how much you can reasonably invest, or whether you need to focus on paying down existing debt.

A personal balance sheet consists of two major categories: assets and liabilities. You can further divide these categories into subcategories that outline what you own and owe. Let’s briefly examine the typical structure of a personal balance sheet.

“Assets” is the first section on a personal balance sheet, and it covers everything you own that has a monetary value. These include tangible items like your home, car, and personal belongings, as well as intangible items like investments and savings accounts. Essentially, anything you could sell or cash in for money is considered an asset.

Assets are typically categorized into two groups: liquid and non-liquid assets. Let’s briefly examine the types of assets that fall under each group.

Liqui d Assets

“Liquid Assets” is the first category under the “Assets” section. It includes all assets that can be quickly and easily converted into cash without losing much value. Such assets include the following: 

• Cash and Cash Equivalents: This subcategory accounts for physical cash, checking accounts, savings accounts, certificates of deposit, and money market accounts, which are investments easily convertible to cash, making them as liquid as cash.
• Liquid Investments: This subcategory covers stocks, bonds, mutual funds, exchange-traded funds, and other liquid investment assets. You can convert these assets to cash relatively quickly without losing much value.

Non-Liq uid Assets

“Non-Liquid Assets” is the second category under the “Assets” section. This subcategory covers all assets that cannot be easily converted into cash or would lose value in the process. Such assets include the following:

• Retirement Accounts: This subcategory includes all forms of retirement funds you have. While the assets within a retirement account (like a 401(k) or an IRA) may be liquid, there are often penalties and tax consequences for withdrawing funds before a certain age. This is why it is usually classified as a non-liquid asset.
• Real Estate: This subcategory covers the market value of your home, rental properties, or any other real estate properties you own.
• Personal Property:   This subcategory includes the value of tangible assets such as cars, jewelry, furniture, electronics, collectibles, and other personal belongings. Note that these items should be valued at what they could be sold for now, not what was initially paid for them, as the value of many items depreciates over time, and overvaluing your assets can result in an inflated net worth. 
• Business Ownership: If you own a business, the value of your ownership stake is an asset and should be recorded under this subcategory.
• Other Assets: This subcategory accounts for any other assets not included in the preceding subcategories, such as loans you have given to others, tax refunds expected, etc.

“Liabilities” is the second section on your personal balance sheet, and it represents all debts and financial obligations. These can include various forms of debt, such as mortgages, car loans, credit card balances, and personal loans. Essentially, anything you need to pay back to others, whether to a bank, a credit card company, or a friend, is considered a liability.

Just as with assets, liabilities are also usually categorized into two groups: short-term and long-term liabilities. Let’s briefly examine the types of liabilities that fall under each group.

Shor t-Term Liabilities

“Short-Term Liabilities” is the first category under the “Liabilities” section. It includes all debts that are due within a year. Such liabilities include the following:

• Credit Card Balances: This subcategory highlights all you owe to credit card companies.
• Utility Bills: This subcategory covers all your utility bills, such as electricity, water, gas, and internet.
• Medical Bills: This subcategory includes any outstanding bills you owe for medical services or treatments. This can include doctor’s visits, hospital stays, and prescription medications. 
• Personal Loans: This subcategory accounts for any loan you take out for personal reasons, such as to cover unexpected expenses or to consolidate debt, and are due within a year.
• Payday Loans: This subcategory covers all short-term loans typically due on your next payday. 
• Overdrafts: This subcategory highlights the amount by which withdrawals from your bank account exceed the available balance.
• Taxes Due: This subcategory includes everything you owe to the government in taxes. This can include income, property, and any other taxes due within a year.
• Other Short-Term Liabilities: This subcategory accounts for every other bill or money you owe and is due within a year, such as insurance premiums, subscription services, gym memberships, and contingent liabilities, which are potential liabilities that depend on a future event.

Long-Term Liabil ities

“Long-Term Liabilities” is the second category under the “Liabilities” section. It includes all debts that are due in more than a year. Such liabilities include the following:

• Mortgage: This subcategory covers every mortgage you’ve taken on your home. It is typically the most significant liability for most people and is paid off over many years, often 15 to 30 years.
• Auto Loan: This subcategory includes any car loans you’ve taken out. These loans are typically paid off over a period of 3 to 7 years.
• Student Loans: This subcategory highlights any student loans you’ve taken out, which typically have a 10- to 30-year repayment period.
• Personal Loans: This subcategory accounts for any loan you take out for personal reasons, such as to cover unexpected expenses or to consolidate debt, and are due after a year.
• Pension Liabilities: This subcategory spotlights the amount you owe to your pension plan if you have borrowed against it.
• Long-Term Lease Obligations: This subcategory includes the amount you owe on any long-term lease, such as a car or equipment lease.
• Other Long-Term Liabilities: This subcategory covers any other long-term obligations that do not fit the preceding categories, such as a lawsuit settlement being paid off over time.

“Net Worth” is the final figure on a personal balance sheet. This figure is a clear indicator of your financial health, and you can calculate it using the following formula:

• Net Worth = Total Assets – Total Liabilities

For instance, let’s assume you own a house valued at $350,000, have a car worth $20,000, a retirement account with $50,000, and a savings account with $10,000, putting your total assets at $430,000. Let’s further assume you have a mortgage balance of $200,000 and a car loan of $15,000, putting your total liabilities at $215,000. In this scenario, your net worth would be:

• Net Worth = $430,000 (Total Assets) – $215,000 (Total Liabilities) = $215,000

This positive net worth of $215,000 implies that you own more than you owe, which is the ideal financial position to be in. Suppose your liabilities had exceeded your assets in the preceding scenario. In that case, you’d have a negative net worth, meaning you owe more than you own. 

Your net worth is a crucial measure of your financial stability. A high positive net worth implies that you are in a strong financial position and have effectively managed your income, savings, investments, and debts. A negative net worth, on the other hand, signals the need to reevaluate your financial habits to reduce debts and increase assets to avoid financial insolvency.

Understanding your financial situation is crucial for making informed decisions about your future. A personal balance sheet is a valuable tool for gaining this understanding. Here are some key benefits of creating and maintaining this financial statement:

Increased Financial Awareness

Regularly creating and reviewing your balance sheet increases your awareness of your financial situation. This heightened awareness can lead to better financial decisions, such as avoiding unnecessary debt and expenses, making better investment choices, and being more disciplined with savings.

For instance, if you notice that a large portion of your income is spent on dining out and entertainment, this awareness could lead you to make more disciplined spending choices, such as cooking at home or choosing free entertainment options.

Moreover, understanding your financial situation can also lead to psychological benefits. For example, knowing that you have a manageable level of debt and a solid savings plan reduces financial anxiety and increases confidence in your ability to achieve your financial goals. Additionally, this awareness fosters a sense of control over your finances, encourages a more disciplined approach to spending and saving, and promotes a more positive and proactive outlook towards your financial future.

Snapshot of Financial Health

A balance sheet provides a quick, overall view of your financial health by showing your assets and liabilities at a glance, making it easier to identify financial strengths and weaknesses. For example, if your balance sheet reveals that your credit card debt is more than 50% of your total assets, it’s a clear sign that you need to focus on debt reduction. Ignoring this signal could lead to escalating debt, higher interest payments, and a lower credit score.

Conversely, if your balance sheet shows that your assets are three times greater than your liabilities, that implies positive financial strength. You could leverage this strength by investing in higher-yield assets or taking on manageable debt to invest in opportunities with a high return on investment.

However, it is crucial to approach this cautiously and consider the potential risks involved. Do thorough research or consult a financial advisor before making significant financial decisions.

Wealth Tracking

Creating and updating your personal balance sheet regularly helps you monitor your wealth over time. This ongoing tracking lets you see if you’re progressing toward your financial goals and pinpoint areas needing improvement.

For example, if you observe that the value of your stock portfolio has decreased significantly over the past year, this might indicate that your investment strategy needs to be reevaluated. Failing to take action could result in further losses, considerably reducing your overall wealth.

It’s important to factor in economic variables like inflation when assessing your financial growth. A nominal increase in wealth doesn’t always equate to an actual increase in financial well-being. For instance, a 3% increase in your wealth over the past year may seem positive, but if the inflation rate is 5%, your real wealth has actually decreased by 2%. It’s great to see your wealth grow year after year, but it’s essential to ask yourself: does the growth rate outpace or at least keep up with inflation?

A personal balance sheet is an effective tool for planning financial goals. By knowing your net worth, you can devise better strategies for saving, investing, or debt repayment, helping you make informed decisions to achieve your financial goals. Let’s say you notice that your net worth is decreasing; it might be time to cut expenses, pay down debt, or reconsider large purchases or investments.

For example, if your net worth has decreased by 10% over the past year, you might decide to sell non-essential assets, reduce discretionary spending, or refinance your debt to lower interest rates. Doing a mix of the preceding will help you increase your net worth.

Additionally, a personal balance sheet can help you create a clear and detailed financial plan. For example, by knowing your net worth, you can set realistic savings and investment goals for the next year.

Remember, it is necessary to regularly revisit and adjust your financial plan and goals as your financial situation changes. Factors that may necessitate a change in your plan include a change in income, unexpected expenses, or changes in your financial goals. For example, if you receive a promotion and a salary increase, you may want to adjust your savings and investment goals accordingly. Similarly, if you incur unexpected medical expenses, you may need to adjust your budget and debt repayment plan .

Advanced Financial Analytics

Creating and maintaining a personal balance sheet makes it easier to calculate and track important personal financial ratios like the debt-to-asset ratio and capitalization ratio. These ratios are crucial for assessing your financial health and stability. For example, the debt-to-asset ratio helps you understand how much of your assets are financed by debt. In contrast, the capitalization ratio helps you understand your financial structure by showing the proportion of debt owed relative to equity owned.

While a personal balance sheet is an indispensable tool for understanding your financial health, planning your financial future, and making informed financial decisions, it’s also important to recognize its limitations. Knowing them helps you better interpret the information your balance sheet provides and understand what additional steps you may need to take to neutralize each limitation. Here are some key limitations of a personal balance sheet:

Doesn't Show Cash Flow

A balance sheet provides a snapshot of your financial situation at a specific point in time but doesn’t show cash flow. A cash flow statement provides a dynamic view of how money is earned and spent over a specific period. This can highlight issues not immediately apparent from the balance sheet, such as a negative cash flow despite a positive net worth. For example, someone might have a high net worth and still have cash flow problems because most of their assets are illiquid (e.g., real estate, long-term investments, etc.). Creating and maintaining a balance sheet and a cash flow statement is a great way to overcome this limitation.

Fluctuating Values

The values of assets and liabilities can fluctuate over time, making the balance sheet a snapshot accurate only at the moment it’s prepared. And this variability can significantly impact your financial planning and decision-making. For example, if you intend to sell some of your stocks, the value of those stocks when preparing the balance sheet may differ from the value at the time of the sale. This discrepancy could result in overestimating or underestimating the sale proceeds in your budget, each having distinct repercussions.

Consider a scenario where you plan to use the sale proceeds to repay debt. If the actual proceeds are lower than anticipated, you may find yourself unable to cover the debt fully, leading to additional interest charges or penalties. For this reason, it’s crucial to update your balance sheet frequently and exercise caution when making financial decisions based on it.

Subjective Asset Valuation

Some assets, like jewelry, art, or antiques, can be difficult to value accurately, making it challenging to create an accurate personal balance sheet. For instance, valuing a piece of art at $12,000 when it’s actually worth $5,000 will inflate your net worth and potentially mislead your financial planning. It’s advisable to consult a professional appraiser for items of significant value to mitigate this limitation.

Dependency on Accurate Data

The effectiveness of a balance sheet depends on the accuracy of the data inputted. Even minor errors in asset or liability values can lead to incorrect conclusions about your financial health. For example, an underestimation of debt by $1000 may seem inconsequential, but when interest is taken into account, the actual value of that debt could be significantly higher over time. This could lead to understating the time and money required to repay that debt.

Creating a personal balance sheet is crucial for anyone interested in managing their finances responsibly. However, the real benefit of a personal balance sheet lies not just in its creation but in regularly updating and using it wisely. Here are some pro tips to help you make the most of your personal balance sheet:

Start with Accurate Information

Gather all your financial documents, such as bank statements, mortgage statements, and credit card bills, before creating your balance sheet. Doing so will help ensure you don’t miss any assets or liabilities.

Categorize Your Assets and Liabilities

Break down your assets and liabilities into categories such as liquid assets (cash, savings), non-liquid assets (real estate, investments), short-term liabilities (credit card debt, other debts due within a year), and long-term liabilities (mortgage, student loans).

Consider Future Liabilities

Include expected future liabilities, such as a child’s college education, a planned home renovation, or future taxes, in your personal balance sheet. Doing so will help make your financial planning more accurate and effective.

For example, let’s say you’re planning for your child’s college education. You can estimate this future liability by researching the current tuition fees of the college your child might attend and its historical growth rate.

Suppose the current tuition fee is $30,000 per year, and historically, the tuition fee has increased by 5% annually. You can estimate that in 10 years, the tuition fee would be approximately $48,890 per year ($30,000 × (1 + 0.05)^10). This estimation will help you plan and save accordingly.

Use Conservative Values

Be conservative when estimating the value of your assets. This means using the lower end of an estimated value range and being cautious when including assets whose value is highly uncertain. Overestimating the value of your assets provides a false sense of financial security and leaves you unprepared for unexpected financial downturns.

Be Thorough

Being conservative matters a lot in creating an accurate personal statement, but so does being thorough. Ensure you include all your assets and liabilities, even if they seem insignificant. Small amounts can add up over time and may affect your financial health more than you realize. Assets and liabilities commonly overlooked include:

• Digital assets like cryptocurrency;
• Intellectual property (e.g., copyrighted material, patents);
• Collectibles (e.g., rare coins, stamps); and 
• Prepaid expenses (e.g., prepaid insurance, prepaid rent).

Liabilities: 

• Outstanding medical bills;
• Unpaid taxes;
• Personal loans from friends or family; and 
• Any accrued interest on existing loans.

Update Regularly

Update your balance sheet at least every quarter or when there is a significant change in your assets or liabilities, such as receiving an inheritance, buying a house, and paying off or incurring a debt. Recording changes in your assets and liabilities is the best way to spot trends you would have otherwise missed. Moreover, doing so helps make your balance sheet more accurate.

Review Past Balance Sheets

While you should update your personal balance sheet at least four times a year, it’s a good idea to monitor it regularly. Set a schedule for reviewing your personal balance sheet, such as monthly or quarterly. Regularly reviewing past balance sheets can help you identify trends, understand how your financial situation has changed, and make more informed decisions about the future.

Use Alongside A Cash Flow Statement

To better understand your financial health, use your personal balance sheet together with a personal cash flow statement. While the balance sheet provides a snapshot of your financial health at a specific point in time, the cash flow statement shows how you earned your money or spent it over a specific period. Using both financial statements will help you identify trends, gain more insights, and make more informed financial decisions.

Take Advantage of Tools and Templates

There are various tools and templates available online, such as Microsoft Excel templates, personal finance apps, or online budgeting tools that offer personal balance sheet templates. You can start with a basic template from Microsoft Excel and customize it to include categories specific to your financial situation, like adding a section for digital assets or future liabilities.

Reflect and Act

After creating your balance sheet, reflect on your financial situation. Are you meeting your financial goals? Do you need to adjust your spending or saving habits? Use your balance sheet as a tool for making informed financial decisions.

Seek Professional Help

If you are dealing with a complex financial situation, such as managing investments across multiple platforms, dealing with significant debt, or planning for retirement, it might be beneficial to seek advice from a certified financial planner or wealth manager. A financial planner can help you create a comprehensive financial plan, while a wealth manager can help you manage your investments and optimize for tax efficiency.

A personal cash flow statement tracks how much cash you’re earning and where it’s being spent over a specific period, typically a month or a year. This statement provides valuable insights into how you are managing your cash resources, enabling you to understand your spending patterns and make better financial decisions.

A personal cash flow statement records cash inflows and outflows during a specific period. Think of it as a story of your personal finances from a cash perspective, showing you where your money came from (inflows), where it went (outflows), and the net difference between the two. If your inflows exceed your outflows, then you’ll have a positive cash flow. Conversely, if your outflows exceed your inflows, then you’ll have a negative cash flow.

For example, let’s say your monthly cash inflows (salary, freelance work, etc.) are $5,000, and cash outflows (rent, utilities, groceries, etc.) amount to $3,200. In this scenario, your personal cash flow statement for that month would show a surplus of $1800, money you can put towards savings, investment, or other financial goals.

A personal cash flow statement typically consists of two main sections: cash inflows and cash outflows, which can be further divided into various categories and subcategories.

When creating a personal cash flow statement, it is essential to break down your cash inflows and outflows into different line items that track your income sources and expenditures. This detailed breakdown provides a clearer view of your financial situation, helping you identify potential areas for savings or producing additional income.

Let’s briefly examine the typical structure of a personal cash flow statement.

Cash Inflows

“Cash inflows” is the first section on a personal cash flow statement; it covers all the money that comes into your possession during a specific period, usually monthly or yearly. These inflows can include your salary, bonuses, dividends from investments, rental income, money received from selling assets, gifts, or any other sources of income. Essentially, any money you receive or earn is a cash inflow.

Cash Inflows are typically grouped into three categories: earned income, passive income, and other income. Let’s briefly examine the types of cash inflows that fall under each category.

Earned Income

“Earned Income” is the first category under the “Cash Inflows” category. It covers any money you earn by providing a service, working a job, or running a business. 

Common types of income under this category include the following:

• Salary/Wages: This line item covers your primary income source, typically earned through employment or self-employment. This is generally the largest portion of your income.
• Bonus/Commissions: This line item includes any additional income from your primary employment beyond your salary or wages.
• Business Income: If you have a side business or gig, such as freelance work or a small online business, include the gross income (i.e., income after business-related expenses are deducted) under this subcategory. For example, if you have a freelance business and earn $10,000 monthly but have $2,000 in business-related expenses (such as advertising, supplies, etc.), you would record $8,000 ($10,000 – $2,000) under this subcategory.

Passiv e Income

“Passive Income” is the second category under the “Cash Inflows” section, and it highlights any cash you earn without active, ongoing effort after the initial groundwork or setup. This category typically contains the following subcategories:

• Investment Income: This subcategory accounts for stock dividends, bond interest payments, rental property income, or any other income you earn from your investments. For example, if you own 100 shares in a company that pays $1 in dividends per share quarterly, you would receive $100 every quarter. This $100 would be recorded under this subcategory.
• Non-Investment Passive Income: This subcategory covers any income from passive ventures or endeavors where capital investment isn’t the primary driver, such as royalties from intellectual property and ad revenue from websites, blogs, or YouTube channels.

Oth er Income

“Other Income” is the third category under the “Cash Inflows” section, and it includes any other money you receive that doesn’t fall under the categories of earned or passive income. Typical subcategories under this category include the following:

• Asset Sales: If you’ve sold any assets like cars, furniture, investments, etc., the cash generated from these sales would be recorded under this subcategory. For example, if you sold a car for $10,000, this amount would be recorded under the “Sale of Assets” subcategory. Similarly, if you sold shares of stock for a total of $5,000, this amount would also be recorded here.
• Miscellaneous Income: This subcategory tracks all miscellaneous income sources like alimony, child support, social security income, lottery winnings, gifts, and inheritance. For example, if you received $500 as a reimbursement from your employer for work-related expenses, $200 as a refund from a returned purchase, and $50 as cashback from your credit card, you would record these amounts under this subcategory.

Cash Outflows

“Cash outflows” is the second section on a personal cash flow statement, and it represents all the money you spend during a specified period, typically monthly or yearly. These outflows include expenses such as rent or mortgage payments, utility bills, groceries, transportation costs, loan repayments, and entertainment. 

Essentially, any money you spend is a cash outflow, and unlike cash inflows, which increase your available funds, cash outflows reduce them. Let’s briefly examine the types of cash outflows that fall under this section.

Ess ential Expenses

“Essential Expenses” is the first category under the “Cash Outflows” section. It tracks all necessary costs you incur to maintain your basic standard of living. In other words, this category covers every cash you spend on needs rather than wants. Another way to think about essential expenses is that they are cash you need to spend to survive and function in society. Common types of expenses under this category include the following:

• Housing: This subcategory covers your mortgage or rent payments, maintenance, property tax, and renters’ insurance, among other housing-related costs. If you own a home, you will have property tax expenses; if you rent, you may have renters’ insurance. Accounting for these variations makes your cash outflows more accurate.
• Utilities: This subcategory accounts for basic services vital to everyday living, such as electricity, gas, water, sewer, trash, internet service, and phone bills.
• Food: This subcategory typically includes groceries and other essential food-related expenses, like school lunches for children or meals for elderly family members.
• Transportation: This subcategory highlights car payments, gas, insurance, maintenance, public transit, ride-share costs, vehicle registration, tolls, parking, and all other transportation-related expenses. 
• Healthcare: This subcategory covers health insurance premiums, out-of-pocket medical costs, prescriptions, alternative therapies, health supplements, and all other healthcare-related expenses. 
• Education: This subcategory includes tuition, textbooks, online courses, professional development, workshops, seminars, conferences, school supplies for kids, tutoring, educational software, and other education-related expenses. 
• Essential Personal Care: This subcategory includes clothing, personal grooming, dental care, cosmetics, skincare, and other personal care-related expenses. 
• Child Care/Support: This subcategory covers child care costs, school fees, child support payments, and other related expenses. 
• Insurance: This subcategory spotlights life insurance, disability insurance, and other insurance-related expenses. 
• Taxes Paid: This subcategory covers any additional tax payments you may make, such as estimated tax payments, that are not automatically deducted from your income. 
• Miscellaneous Essential Expenses: This subcategory covers essential expenses that don’t fit into the preceding subcategories. These include prescription glasses or contacts, special dietary needs, home safety equipment, professional licensing or certification fees, alimony payments, bank fees, etc.

Non-Essential Expenses

“Non-Essential Expenses” is the second category under the “Cash Outflows” section. All expenses that aren’t necessary for your survival or basic comfort but contribute to your lifestyle and happiness fall under this category. These expenses are typically optional and can be reduced or eliminated if necessary. Common types of non-essential expenses under this category include the following:

• Dining and Entertainment: This subcategory covers cash spent on meals, snacks, and beverages from restaurants, cafes, takeout, and delivery services.
• Luxuries: This subcategory includes any cash spent on things like jewelry, high-end electronics, designer clothing, etc.
• Non-Essential Personal Care: This subcategory accounts for expenses that are not necessary for maintaining basic health and hygiene. These expenses include spa and massage treatments, luxury cosmetics and skincare, tanning, etc.
• Leisure and Entertainment: This subcategory includes a wide range of expenses like gym memberships, subscriptions (like Netflix, Spotify, club memberships, etc.), hobbies, vacations, cultural events, theater, concerts, etc. 
• Miscellaneous Non-Essential Expenses: This subcategory accounts for all the expenses that are not crucial for your survival, basic comfort, or regular lifestyle but don’t fit into any existing non-essential expenses subcategories. These include gifts, donations, decor, special occasions, pet-related expenses, books, magazines, etc.

Non-Recurring Expenses

“Non-Recurring Expenses” is the third category under the “Cash Outflows” section. It accounts for essential or non-essential expenses that don’t occur regularly or predictably and don’t fit under preceding categories and subcategories. For example, acquisition of assets, legal fees, or any unexpected expenses like family emergencies. Common types of non-recurring expenses under this category include the following:

• Assets Acquisition: If you’ve bought assets like property, vehicles, or other large purchases, the cash used for these acquisitions would be recorded under this subcategory. 
• Property Loss: Expenses related to replacing lost or stolen property not covered by insurance, such as replacing stolen electronics, furniture, or other valuable items, can be recorded here.
• Family Emergencies: Expenses related to unexpected family emergencies, such as travel costs for a family member’s funeral or medical emergency, can be recorded here.

Debt Payments

“Debt Payments” is the fourth category under the “Cash Outflows” section. Any money used to repay the principal and interest on your debts is recorded under this category.

“Savings” is the fifth category under the “Cash Outflows” section. It tracks whatever income is set aside for future use, such as an emergency fund, retirement, or specific financial goals. Common line items under this category include goal-specific savings, emergency funds, retirement accounts, etc.

Investments

“Investments” is the sixth category under the “Cash Outflows” section. It covers any money used to purchase assets with the expectation that they will generate a return in the future. Line items commonly recorded under this category include stocks, bonds, mutual funds, real estate, start-up investments, etc.

Calculating your net cash flow is the final step in creating your personal cash flow statement. Net cash flow is the figure you get after subtracting your total cash outflows from your total cash inflows. It’s a vital indicator of your financial liquidity. You can calculate this figure using the following formula: 

• Net Cash Flow = Total Cash Inflows – Total Cash Outflows

To illustrate how to calculate net cash flow, let’s consider the following example. Assume your total cash inflows, which include your salary of $4,000, investment income of $500, and other income sources of $500, come to $5,000 per month. And your total cash outflows, encompassing costs such as housing ($1,500), food ($500), transportation ($400), personal expenses ($400), and debt repayments ($900), sum up to $3,700 per month. In this case, your net cash flow would be:

• Net Cash Flow = $5,000 (Inflows) – $3,700 (Outflows) = $1,300

Your net cash flow is $1,300 in this scenario, indicating a positive cash flow. This means you earn more than you spend, leaving you with excess cash that can be used for savings, investments, or reducing debt.

Interpreting your net cash flow involves understanding what the number means for your financial health. A positive net cash flow indicates a healthy financial situation where you live within your means and have leftover income to allocate towards savings, investments, or debt repayments. This is generally an ideal financial position to be in.

Conversely, if your net cash flow is negative, you spend more than you earn. A negative net cash flow could be due to one-time large expenses or indicate a pattern of overspending. If it’s the former, this may not pose a long-term issue, but if it’s the latter, you may need to reassess your budget and spending habits. Creating a detailed budget, tracking your expenses, and identifying areas where you can cut back or increase your income can help turn a negative net cash flow into a positive one.

To summarize, your net cash flow reveals whether you’re living within your means or overspending. It can serve as a wake-up call to adjust your spending habits or as a green light that you’re on track with your financial plans.

Creating a personal cash flow statement is more than just a financial exercise; it can help you develop a roadmap to your financial freedom. Whether you’re struggling with budgeting, debt, or planning for the future, a personal cash flow statement can provide invaluable insights. Here are some of the key benefits you unlock when you create a personal cash flow statement:

Regularly updating and reviewing your personal cash flow statement not only helps you keep tabs on your financial situation but also increases your awareness of your spending habits. For example, regularly reviewing your personal cash flow statement might help you notice that you’re consistently spending $100 monthly on takeout. Noting this pattern is the first step toward deciding whether this is an area where you can and should cut back.

Interestingly, as you regularly review your personal cash statement, you will become more conscious of your spending decisions in real time, not just when you review your statement.

Enhanced Budgeting

A personal cash flow statement can help you create a more detailed and practical budget by identifying exactly where your money is going. And with a comprehensive cash flow statement, you can easily spot areas where you may need to cut back on your expenses or allocate more funds.

For instance, let’s say you notice that your grocery bill has increased significantly over the last six months. You can delve deeper to understand why and adjust your budget or behavior accordingly. You may decide to allocate more funds to your grocery budget for the following months or find ways to reduce grocery expenses. This real-time feedback loop is invaluable for effective budget management.

Set Achievable Financial Goals

By highlighting your disposable income or the money left over after all cash outflows have been accounted for, a personal cash flow statement can help you set realistic financial goals, both short-term and long-term. This way, you’re not just aiming mindlessly but setting achievable targets.

For instance, if your cash flow statement reveals that you have $300 left each month after essential expenses, setting a goal to save $500 a month would be unrealistic and could leave you frustrated. On the other hand, a realistic goal based on your actual disposable income, such as saving 20% ($60) monthly, can improve your financial self-esteem and encourage you to maintain or improve your financial habits.

Evidently, setting achievable goals not only improves your financial self-esteem but also leads to a sense of accomplishment that motivates you to set and achieve more financial goals.

Effective Debt Management

Effective debt management is critical to eliminating liabilities within the shortest possible time to avoid unnecessary interest payments. A well-structured cash flow statement can reveal non-essential expenses you could cut back on or eliminate to free up funds to fast-track your debt repayment.

Consider this scenario: After creating a monthly cash flow statement, you notice spending $200 on gourmet coffee and $150 on streaming services. Making coffee at home and canceling a few subscriptions could free up $350 monthly or $4,200 annually!

When redirected to your credit card debt, this surplus can significantly reduce your outstanding balance and the interest you’d otherwise accrue, fast-tracking your path to being debt-free. Similar savings can be spotted in areas like dining out, unused gym memberships, or impulse online purchases.

Remember, staying disciplined with your repayment strategy is vital to managing and eliminating debt. Timely repayments free you from debt faster and improve your credit score, opening doors for better financial opportunities in the future.

Deeper Financial Analysis

The insights a personal cash flow statement provides are not limited to tracking income and expenses. By using your cash flow data, you can easily calculate key personal financial ratios. An example of these ratios is the debt-to-income ratio, calculated by dividing total monthly debt payments by total income.

Personal financial ratios are more than just numbers. Despite popular misconceptions, they are performance indicators that can help anyone gauge their financial health and make informed decisions. For example, lenders consider a debt-to-income ratio higher than 0.36 as a red flag. Your ratio exceeding this threshold may result in higher interest rates on loans or make it challenging to secure credit. In such a situation, it’s prudent, therefore, to reduce existing debt before attempting to take on additional debt.

By creating and regularly updating your cash flow statement, you can actively monitor these ratios, spot trends, and make adjustments to reach financial goals more effectively.

While a personal cash flow statement is invaluable for understanding your finances, it has limitations, which, when recognized, can lead to a more accurate interpretation of your data. Here are a few limitations to remember when analyzing a personal cash flow statement.

Doesn't Reflect Future Commitments

A cash flow statement primarily captures present transactions and doesn’t account for upcoming financial obligations like loan repayments or planned investments. For instance, if you’ve recently agreed to a car lease or plan to enroll in a long-term course next year, these commitments won’t appear in your current statement, potentially underestimating future expenses. You can neutralize this limitation by creating a forward-looking budget alongside your cash flow statement.

Doesn't Reflect Total Wealth

A cash flow statement won’t reflect the value of assets such as your home, car, investments, or savings, thus not fully representing your wealth. A balance sheet, on the other hand, provides a snapshot of your assets, liabilities, and net worth, offering a comprehensive view of your overall wealth. As such, it’s important to use your cash flow statement together with a balance sheet to get a complete picture of your current financial health.

Potential for Missed Expenditures

It’s easy to overlook some expenses, especially smaller or infrequent ones, which can make your cash flow statement inaccurate. One way to mitigate this limitation is by meticulously tracking all cash outflows, no matter how small. You can do this by using an expense tracking app, keeping all receipts, or reviewing bank statements.

Provide a Snapshot of a Specific Period

A personal cash flow statement only provides a snapshot of your cash inflows and outflows for a specific period, typically a month or a year. It does not reflect changes in your financial situation over time. For instance, if you faced a significant medical expense in January and then maintained a strict budget for the next few months, a cash flow statement for April might not reflect the financial strain you experienced at the start of the year. To track your financial progress, you need to regularly update and review your cash flow statement and compare it with previous periods.

Understanding your cash flow is essential for managing your finances effectively. A personal cash flow statement enables you to identify patterns, plan for the future, and make informed financial decisions. However, to get the most out of your personal cash flow statement, you need to be diligent in its creation and usage. Here are some pro tips for creating and using a personal cash flow statement effectively:

Record Everything

Record all inflows and outflows, no matter how small, to make your cash flow as accurate as possible. Even minor discrepancies can lead to an inaccurate picture of your financial health. For example, small expenses like daily coffee or occasional parking fees are often overlooked. However, a $5 daily coffee adds up to $150 monthly and $1,825 yearly. Assuming your yearly expenses amount to $36,000, you underreport your expenses by ~5% every year.

Use Accurate Time Frames

Make sure the time frame for your cash flow statement matches the time frame for your budget and financial goals. A monthly cash flow statement is appropriate for most people because many expenses and income sources occur on a monthly basis. However, if you have significant irregular expenses or variable income, you may need to review and update your cash flow statement more frequently, such as weekly or bi-weekly.

Be Specific

When noting your expenses, avoid grouping them into overly broad categories to understand your spending patterns better. For example, instead of vaguely listing $150 for “utilities,” you could break it down: $50 for “electricity,” $40 for “water,” $30 for “internet,” and $30 for “gas.” Such granularity can reveal surprising spending habits, like unusually high water cost that prompts leak checks or water conservation efforts.

However, it’s also crucial not to overwhelm your cash flow statement with excessive detail. Excessive details can clutter your statement, making it harder to identify overall trends or patterns quickly. For example, instead of listing “Netflix,” “Hulu,” and “Disney+” separately, group them under “Streaming Services”. The goal is to find a categorization balance that ensures your cash flow statement remains streamlined yet insightful, setting the stage for well-informed financial decisions.

Distinguish Between Essential and Non-Essential Expenses

Distinguishing between essential and non-essential expenses helps you identify areas to cut costs. Essential expenses are the basic costs incurred to maintain a safe and healthy living standard; they cover the fundamental needs required to live and work in modern society. Such expenses include groceries, housing, healthcare, utilities, and transportation. On the other hand, non-essential expenses are costs that enhance your life but aren’t vital for your basic survival. Dining out, vacations, luxury shopping, streaming services, etc., are non-essential expenses.

Note that essential expenses can differ based on individual circumstances and lifestyles. For example, if you work from home, high-speed internet becomes a necessity, whereas someone without remote work might view it as a luxury. It’s essential to recognize that what’s necessary for one person might be a luxury for another. Tailor your cash flow statement to reflect your unique needs and priorities.

Plan for Emergencies

Always ensure that you maintain a financial buffer for emergencies and unexpected expenses. Aim to set aside at least 3-6 months’ worth of living expenses in an easily accessible account. This duration is often optimal as it provides adequate coverage for scenarios like unexpected job losses, sudden medical bills, or major home repairs.

Keep your emergency fund in a high-yield savings account, where your money remains readily accessible and earns interest. You might also consider diversifying your emergency fund by putting a portion in money market accounts or short-term certificates of deposit for potentially higher returns.

Review and Adjust Regularly

Your cash flow statement is a dynamic document that should be reviewed and updated regularly. Regular updates help you stay on top of your finances and make necessary adjustments promptly. Update your cash flow statement as regularly as possible. Monthly updates are standard, but you may want to update more infrequently if your inflows and outflows rarely change.

Identify Areas for Cost Reduction

Make it a habit to regularly review your cash flow statement to pinpoint areas where you can trim expenses. If, for instance, you notice a significant portion of your money goes into dining out, consider cooking at home more often to reduce costs. Similarly, evaluate monthly subscriptions to see if there are any you no longer utilize, or consider cheaper alternatives to recurring expenses, ensuring every dollar is spent wisely.

Identify Opportunities to Increase Income

Review your cash flow statement regularly to identify opportunities for increasing your income. This could include asking for a raise, starting a side hustle, or investing in income-generating assets. For instance, if you have a skill like graphic design, you could begin freelancing and taking on small projects in your free time. Alternatively, investing in income-generating assets like dividend stocks or real estate can also increase your income.

Set Realistic Goals

Setting achievable goals for savings, investments, and debt repayment is crucial. For example, if your monthly income is $3,000, setting a goal to save $1,500 monthly may be unrealistic after accounting for all other expenses. Always consider all your essential expenses before setting aside a savings goal.

Use Technology

Using a financial tracking app or software can help you keep track of expenses and minimize omissions. Many apps like Mint, YNAB, Spendee, and PocketGuard offer features that can help you track your expenses, set budgets, and monitor your investments. Look for an app that allows you to categorize your expenses, set alerts for overspending, and provide a visual representation of your financial health.

Pair With Balance Sheet

Your personal cash flow statement is one part of your financial profile. Pairing it with a balance sheet provides more accurate insights into your financial status, allowing you to identify areas of vulnerability, such as looming debts, and opportunities, like potential investments.

By tracking your monthly net cash flow statement from the cash flow statement and your net worth from the balance sheet, you can strategically plan for future investments, debt repayments, and savings. For instance, if your cash flow statement shows a consistent surplus each month, but your balance sheet reveals high-interest debt, it might be wise to allocate some surplus towards that debt reduction.

Feel free to seek assistance from a financial advisor or planner if creating and managing your cash flow statement seems overwhelming. While a financial advisor can be helpful for anyone, it is especially beneficial for those with more complex financial situations, such as multiple income streams, significant debts, or an extensive investment portfolio. For example, if you have $20,000 in credit card debt, a financial planner can help you develop a plan to pay it off within a realistic timeframe.

Meet Sarah, a 24-year-old recent graduate who has just started her first job as a graphic designer in a reputable advertising agency. Now, with a steady income and eager to start on the right financial footing, she has decided to create a personal balance sheet to gain insight into her financial health.

Sarah has some student loans, a personal loan she took for a family emergency, has been using a credit card for daily expenses, and is living in a rented apartment. Although she had saved some money from part-time jobs during college, she’s unsure how her assets measure up against her debts. She aims to clear her debts, invest more, and contribute more to her retirement fund.

After reading this comprehensive guide on personal financial statements, Sarah decided to create a personal balance sheet to understand her financial status clearly and develop a financial plan.

Creating the Personal Balance Sheet

Sarah sets aside a weekend to organize her financial documents, online accounts, and other financial information to compile a comprehensive list of her assets and liabilities. She then begins by listing all her assets and liabilities meticulously.

LIQUID ASSETS

• Checking Account: $3,200
• Savings Account: $5,500
• Total Liquid Assets: $9,000

NON-LIQUID ASSETS

• Retirement Account (401k): $1,000 (from her new job)
• Investment Portfolio (a diversified set of index funds): $2,700 
• Car: $10,000 (current market value)
• Total Non-Liquid Assets: $13,700
• Total Assets: $22,700

LIABILITIES

SHORT-TERM LIABILITIES

• Credit Card Debt (20.93% annual percentage rate): $2,500
• Utility Bills (monthly): $200
• Personal Loan from a Friend (to be repaid within a year): $1,000
• Total Short-Term Liabilities: $3,700

LONG-TERM LIABILITIES

• Student Loans (10-year loan term; 6% fixed interest rate): $25,000
• Car Loan (7-year loan term; 9% annual percentage rate): $8,000
• Total Long-Term Liabilities = $33,000
• Total Liabilities = $36,700
• Net Worth = -$14,000

Interpretation and Action

Upon analyzing her Personal Balance Sheet, Sarah finds herself with a negative net worth, largely because of her student and car loans. She decides to take the following actions:

• Credit Card Payoff: Prioritize paying off her credit card debt first, as it has the highest interest rate (20.93%), and then pay off the car loan next, since it has the second-highest interest rate (9%). To achieve this, she decided to allocate 60% more of her monthly disposable income towards paying off the credit card debt. 
• Student Loan: Since her student loan has a low single-digit interest rate, Sarah figures there’s no pressing need to rush clearing her student loan. Maintaining her current monthly payment is more financially prudent, especially since student loan interest payments are tax deductible. However, she also knows paying off the loan earlier can save her some interest payments. For that reason, she plans to increase her student loan payments if she gets a chance to do so.
• Emergency Savings: Sarah understands the importance of having an emergency fund. Hence, she decides to save 20% of her disposable income each month until she accumulates a year’s worth of living expenses.
• Retirement Planning: Continue contributing to her 401k to take advantage of her employer’s match and the power of compound interest. 
• Investing: Sarah decides to postpone increasing her investment allocation until she has paid off her credit card debt. She understands that it will be challenging to generate real investment returns, seeing as the interest rate on credit card debt exceeds her portfolio’s annualized return.
• Cash Flow Statement: Create a detailed personal cash flow statement to monitor her income and expenses. Doing so will help her identify expenses she can cut back on and allocate more funds toward her debt repayment and savings goals.

Benefits Sarah Gained from Creating a Personal Balance Sheet

• Increased Financial Awareness: By creating her personal balance sheet, Sarah became more aware of her financial situation, which helped her to make informed financial decisions. She decided to prioritize paying off her credit card debt, postpone increasing her investment allocation until her high-interest debts were paid off, and start building an emergency fund. This heightened awareness also reduced her anxiety about her finances and increased her confidence in achieving her financial goals.
• Snapshot of Financial Health: The balance sheet provided Sarah with an overall view of her financial status, revealing that her liabilities significantly exceeded her assets. Her negative net worth was a clear signal that she needed to focus on debt reduction and savings. Identifying this financial weakness allowed her to create a targeted plan to improve her financial health.
• Financial Progress Tracking: By regularly updating her personal balance sheet, Sarah can monitor her wealth over time and see if she is progressing toward her financial goals. For example, as she pays off her debts, she will see a reduction in her liabilities and an increase in her net worth.
• Financial Planning: Creating the personal balance sheet enabled Sarah to begin creating a financial plan. She was able to set realistic goals for saving and debt repayment, giving her a structured path forward. 
• Advanced Financial Analytics: Creating a personal balance sheet made it easier for Sarah to calculate and track important personal financial ratios. For example, she could calculate her debt-to-asset ratio and use this information to make informed decisions about debt repayment and borrowing.

Limitations Sarah Overcame

• Doesn’t Show Cash Flow: While the personal balance sheet provided a snapshot of her financial situation, it did not show her cash flow. Recognizing this limitation, Sarah decided to create a detailed personal cash flow statement to monitor her income and expenses. Doing so would help her identify areas where she could cut back and allocate more funds toward her debt repayment and savings goals.
• Fluctuating Values: Sarah understood that the values of assets and liabilities could fluctuate over time. To mitigate this limitation, she decided to update her balance sheet every quarter to ensure that it always reflected her current financial situation. 
• Dependency on Accurate Data: Any oversights or inaccuracies could paint an incomplete picture of Sarah’s financial status, potentially leading her to make ill-informed decisions. To overcome this limitation, she meticulously included every asset and liability, no matter how small, and validated the values by checking her bank statements, credit card statements, investment account statements, and other financial records. Additionally, she used financial management apps to automatically pull and consolidate data, further enhancing the accuracy of her balance sheet.
• Subjective Asset Valuation: Knowing that misvaluing her assets can make her balance sheet inaccurate, Sarah used the current market value for her car and checked the most recent statements for her savings and investment accounts.

Pro Tips Sarah Followed

• Regular Updates: Sarah set a reminder to update her Personal Balance Sheet every quarter to track her financial growth and to recalibrate her plans as needed.
• Be Thorough: Sarah included all her assets and liabilities, no matter how small, to ensure her balance sheet was comprehensive.
• Accurate Valuation: As mentioned earlier, Sarah made sure to use the current market value for her car and checked the most recent statements for her savings and investment accounts.

Creating a personal balance sheet was a transformative experience for Sarah. The exercise gave her the information and motivation she needed to take control of her financial future. It provided her with a clear and comprehensive view of her financial situation, enabling her to create a targeted plan to improve her financial health.

Before creating her balance sheet, Sarah often felt overwhelmed by the abstract notion of “net worth” and “financial health.” But after this exercise, these abstract worries solidified into tangible numbers and action points.

Though she started with a negative net worth, Sarah now has a roadmap for eliminating debts and increasing her assets. With a clear roadmap in place, she is now confident in her ability to manage her finances effectively and work towards a secure financial future. This is all thanks to the simple yet enlightening exercise of creating and maintaining her personal balance sheet.

Having already evaluated her net worth via her Personal Balance Sheet, Sarah recognized the importance of tracking her monthly income and expenses. She knows that understanding her cash flows will help her stay on course with her financial goals.

As a recent graduate thrust into the real world with her first job, Sarah was determined not to succumb to the all-too-familiar pitfalls of unchecked spending and minimal savings. Earning a consistent paycheck ($4,500) and living by herself means she has inflows and outflows to monitor closely. And with goals like repaying debts, building an emergency fund, and future investments in mind, it became clear to Sarah that she needed a comprehensive tool to keep tabs on her money.

Creating the Personal Cash Flow Statement

Taking another weekend, Sarah organizes her bank statements, pay stubs, bills, expense-tracking app printouts, and receipts she has accumulated over the past month to compile an accurate cash flow statement. She then begins listing down all sources of cash inflow and outflow.

CASH INFLOWS

• Base Salary from Advertising Agency: $3,420 (after a 24% tax deduction)

FREELANCE INCOME

• Graphic Design Projects: $996

INVESTMENT RETURNS

• Dividends from Index Funds: $35

NON-INVESTMENT PASSIVE INCOME

• Affiliate Marketing from Personal Design Blog: $236
• Ad Revenue from Personal Design Blog: $112
• Sale of Old Laptop: $300
• Total Cash Inflows: $5,099

CASH OUTFLOWS

ESSENTIAL EXPENSES

• Rent: $1,200
• Groceries: $300
• Utilities: $200 (including electricity, water, and internet)
• Gas (for transportation): $120
• Health Insurance (deducted from her salary): $120
• Car Insurance: $90
• Personal Care (haircuts, toiletries): $60
• Public Transportation: $50
• Total Essential Expenses: $2,140

NON-ESSENTIAL EXPENSES

• Dining Out: $250
• Miscellaneous Purchases: $100
• Gym Membership: $50
• Streaming Services (Netflix, Spotify): $25
• Total Non-Essential Expenses: $475

DEBT PAYMENTS

• Student Loan Repayment: $300
• Car Loan Payment: $200
• Credit Card Minimum Payment: $100
• Personal Loan from a Friend: $100
• Total Debt Payments: $700
• Savings Account Contribution: $500
• 401k Contribution: $225 (5% of her gross salary)
• Total Savings: $775
• Investment into Index Funds: $200
• Total Investments: $200
• Total Cash Outflows: $4,140
• Net Cash Flow: $959

Upon completing her personal cash flow statement, Sarah is relieved to see a positive net cash flow of $959. This positive net cash flow means she’s living within her means and has a surplus after paying all monthly obligations.

However, she recognized that $300 of the surplus was from a one-time sale of her old laptop—an irregular form of income. This meant that her consistent net cash flow was actually $659—give or take a couple of dollars due to the unpredictable nature of her non-investment passive income.

With this in mind, she decided to further allocate her net cash flow towards:

• Caution with Irregular Income: She decided not to rely on her asset sale for recurring monthly expenses. Instead, she’d treat such irregular income as a bonus. 
• Debt Acceleration: In a bid to reduce high-interest liabilities faster, Sarah allocated an additional $395.40 (or 60% of her monthly disposable income) from her regular surplus towards her credit card debt, increasing the monthly payments to $495.40. By so doing, she will pay off the debt within five months, as long as she doesn’t incur any more credit card debt.
• Emergency Fund Boost: After accounting for the credit card payment, she decides to save an extra $131.80 (20% of $659) from her regular surplus to her emergency fund, bolstering her financial safety net. 
• Personal Loan Payoff Strategy: Remembering the personal loan she took for a family emergency, she committed to allocating 20% of her monthly disposable income to repay it faster. This would amount to $131.80 (20% of $659) every month, in addition to the $100 she currently pays, taking the total monthly payment to $231.80. Sticking to this payment strategy will help her pay off the loan within five months, as opposed to the initial ten.
• Non-Essential Expenditures Review: Sarah observed that her dining out expenses were relatively high. So, she decided to reduce it by $100 (40%) and divert that amount towards her student loan repayment. Doing so will help her pay off the loan three years earlier and save $2,868 in interest payments.
• Car Loan: Sarah realized that by paying $200 monthly, she was already on track to pay off her car loan within four years, three years earlier than her loan term, saving $1,270 in potential interest payments.
• Passive Income : Seeing the success of her personal design blog, Sarah considered investing more time to increase her advertising and affiliate marketing income.

Benefits Sarah Gained From Creating a Personal Cash Flow Statement

• Enhanced Financial Awareness: Sarah better understood her financial status after creating her cash flow statement. This exercise helped her spot patterns, such as her monthly takeout habit, making her reconsider her spending decisions.
• Precise Goal Setting: Sarah found it easier to set financial targets once she knew her disposable income. This ensured she wasn’t setting herself up for failure but creating realistic and achievable financial objectives.
• Effective Debt Management: Completing the cash flow statement, Sarah was better poised to manage her multiple debts. Recognizing the prudence of paying off high-interest debts first, she drafted a strategic repayment plan, saving herself from additional interest accumulation.
• Temporary Snapshot: Sarah understands that the cash flow statement provides data for a specific period. Thus, she plans to review and update hers regularly to monitor financial changes over time.
• Wealth Indication: Aware that the cash flow statement doesn’t reflect total wealth, Sarah complements it with a personal balance sheet to gauge her overall financial health.
• Expenditure Accuracy: Sarah addresses the challenge of overlooked expenses by meticulously tracking every penny, often using financial tracking apps for accuracy.
• Regular Review: Sarah plans to diligently review her cash flow statement every month to ensure it’s updated and reflective of her current financial state. 
• Digital Assistance: Sarah uses expense-tracking apps to automatically categorize and track her inflows and outflows to streamline the process.
• Emergency Preparedness: Sarah maintains an emergency fund, understanding the unpredictability of life events.

Creating a personal cash flow statement was yet another financial eye-opener for Sarah. Just as the personal balance sheet had given her insight into her net worth, the cash flow statement offered her a clear view of her monthly financial activities. She could see where her money came from and where it was going, ensuring she wasn’t merely flying blind when managing her monthly expenses and income.

Sarah’s positive net cash flow is encouraging, and her decisions to accelerate debt repayment and consistently increase her savings demonstrate both proactiveness and foresight. Armed with the insights from her cash flow statement, she is now even more committed to fortifying her financial resilience, ensuring she is not just living for the present but is also well-prepared for the future.

Want a hassle-free way to monitor your finances? Download our free personal financial statement template. Easy to use and fully customizable—it’s everything you need to keep track of your assets, liabilities, and cash movements.

DOWNLOAD: Personal Balance Sheet and Cash Flow Statement Template

How to Use the Template

The template is a view-only file and can’t be edited. To use, click on “File” and then select “Make a copy.” This will get you a copy of the template that can be modified.

Don’t request edit access, please.

In today’s complex economy, tools like a personal balance sheet and a cash flow statement aren’t just nice to have—they’re essential for understanding and navigating your finances.

Think of the balance sheet as a still photo, capturing your assets and liabilities in one snapshot. It allows you to calculate your net worth and can highlight areas for improvement. In contrast, the cash flow statement is like a movie, illustrating the dynamic movement of your funds and providing insights into your liquidity and spending habits.

Individually, these statements offer valuable insights, such as revealing if you’re splurging too much on non-essentials or if debts are becoming unmanageable. Yet, when combined, they paint a comprehensive picture of your financial standing and habits. This dual perspective ensures you know your financial status and how your habits shape it.

As illustrated by the case studies, creating these financial statements is simple, especially with the templates provided in this guide. These templates simplify the process of creating these statements with their auto-calculating fields and intuitive categories. They guide you through the process, minimizing errors. Remember, keeping these statements updated is vital to ensuring you’re on track with your financial goals, be it budgeting, retirement planning, or merely gauging your fiscal health.

Feel free to work with a financial planner or advisor if you find it challenging to decipher and leverage insights from your financial statements. Not only can they assist you in understanding these statements, but they can also offer personalized strategies tailored to your unique financial situation. Beyond helping you interpret these statements, they can also advise on investments, tax planning, and other aspects of financial management that might be outside your comfort zone.

By understanding, creating, and maintaining these personal financial statements, you’ll have the tools to navigate your financial journey, align your financial habits with your goals, and build a secure financial future.

Remember, maintaining and reviewing these statements regularly is as important as their initial creation. As your financial situation evolves—like with a new job, added expenses, or changes in investments—your statements should reflect those shifts to offer accurate insights. So, watch those numbers, make wise choices, and remember—you’ve got this!

Abolade Akinfenwa is a multi-certified finance professional. He’s certified as a Financial Modeling & Valuation Analyst (FMVA)®, Capital Markets & Securities Analyst (CMSA)®, Commercial Banking & Credit Analyst (CBCA)®, Financial Planning & Wealth Management Professional (FPWM)™, and FinTech Industry Professional (FTIP)™. With over three years of experience as a Financial Writer, Abolade specializes in helping finance professionals build authority and generate qualified leads for their services. Interested in collaborating or seeking insights? Connect with Abolade via LinkedIn or Twitter , or email him at [email protected] .

Recommended reading

• Assessing Your Financial Health: Top 22 Personal Financial Ratios
• How to Plan Your Finances Using the 50-30-20 Budgeting Rule (Plus Case Study and Free Template)

Get newsletter updates from Alex

No spam. Just the highest quality ideas that will teach you how to build wealth via the stock market.

Save my name, email, and website in this browser for the next time I comment.

• Contact Alex
• Free Resources

Subscribe to my newsletter and get a free ebook!

PayPal Editorial Staff

February 15, 2024

A personal financial statement is an overview of a person or household's finances. Unlike a budget, a financial statement doesn't track every dollar earned or every expense throughout a period. Instead, it's a snapshot of their financial standing at any given moment.

Read on to learn what goes into a personal financial statement, why people may use them, and more.

Personal financial statements explained

Personal financial statements can be for individuals or households, and they commonly include two parts:

• A balance sheet that lists a person's assets, liabilities, and net worth.
• An income statement that shows sources of income and total annual income.

Here's what goes into each.

Assets can be cash, investments, and other items of value that someone owns. Common examples of assets include:

• Cash and money in bank accounts
• Stocks, bonds, and other investments
• Retirement account funds
• A home, vehicle, boat, jewelry, and other valuable property

Liabilities are outstanding debts. They’re generally listed with the monthly payment and the current balance. Liabilities may include:

• Personal, student, auto, home, and vehicle loans
• Collection accounts
• Legal claims and judgments
• Co-signed or guaranteed loans

Subtract the sum of the liabilities from the sum of the assets to find the person or household's net worth. The resulting net worth may be negative, but that's not necessarily bad. For example, many people have a negative net worth while paying off their mortgage. Net worth isn’t a full indication of someone’s financial health but can serve as another tool to broadly encapsulate what someone owns and owes.

A personal income statement lists various sources of income along with the estimated monthly and annual totals. These may include income from:

• Wages, salary, and commissions
• Side gigs or a business
• Rental income after expenses
• Alimony or child support

What is the purpose of personal financial statements?

There are various reasons someone may want to create a personal financial statement, such as:

Assessing financial health

For people who don't regularly budget or track their accounts, creating a financial statement may be a helpful way to understand their savings, debt, and overall financial health. It may spur them to start saving money or reassure them that they're doing well financially.

Facilitating financial decisions

Reviewing a financial statement may be helpful before making a big decision, such as deciding between buying a new or used vehicle. It can give someone a clearer picture of where their finances stand and, in turn, potentially help them figure out whether a significant purchase is the right choice.

Supporting financial goals

People may want to track their financial statements over time to see how they're progressing with financial goals. For example, someone could list an emergency fund under their assets and keep track of any growth in their balance from one month to the next. Similarly, tracking total liabilities could be helpful when paying off debt to visualize progress and maintain a plan to pay it off.

Preparing a personal financial statement

Some financial institutions may have personal financial statement forms for customers, but people can also create their own statements using a spreadsheet or software. In either case, here are some steps to take when creating a personal financial statement:

• Gather and organize financial information:  Review the most recent statements or log into every financial account to find current balances and monthly payments. Use these to add up current assets, liabilities, and income.
• Connect and sync accounts:  It may be possible to connect accounts to a well-trusted budgeting app to find and easily capture current balances. Even if the apps don't call it a financial statement, many make it easy to review assets, liabilities, and net worth. However, income may need to be calculated separately.

Whether using an app or other third-party service, it’s important to only share financial information with trusted sources. Be sure to do research on any third party before sharing information and remain wary of anyone requesting excessive information.

All in all, personal financial statements can often be an important tool for tracking financial health over time. Some people do this monthly alongside their budget. If that's too difficult without software, consider updating a financial statement every six months to a year. Keeping it updated may make it easy to continuously follow progress for financial goals, maintain understanding of debt balances, and potentially help make decisions for future money management.

Learn about PayPal Savings .

Was this content helpful?

Related content

We use cookies to improve your experience on our site. May we use marketing cookies to show you personalized ads? Manage all cookies

• Applying to Uni
• Apprenticeships
• Health & Relationships
• Money & Finance

Personal Statements

• Postgraduate
• U.S Universities

University Interviews

• Vocational Qualifications
• Accommodation
• ​​​​​​​Budgeting, Money & Finance
• ​​​​​​​Health & Relationships
• ​​​​​​​Jobs & Careers
• ​​​​​​​Socialising

Studying Abroad

• ​​​​​​​Studying & Revision
• ​​​​​​​Technology
• ​​​​​​​University & College Admissions

Guide to GCSE Results Day

Finding a job after school or college

Retaking GCSEs

In this section

Choosing GCSE Subjects

Post-GCSE Options

GCSE Work Experience

GCSE Revision Tips

Why take an Apprenticeship?

Applying for an Apprenticeship

Apprenticeships Interviews

Apprenticeship Wage

Engineering Apprenticeships

What is an Apprenticeship?

Choosing an Apprenticeship

Real Life Apprentices

Degree Apprenticeships

Higher Apprenticeships

A Level Results Day 2023

AS Levels 2023

Clearing Guide 2023

Applying to University

SQA Results Day Guide 2023

BTEC Results Day Guide

Vocational Qualifications Guide

Sixth Form or College

International Baccalaureate

Post 18 options

Finding a Job

Should I take a Gap Year?

Travel Planning

Volunteering

Gap Year Guide

Gap Year Blogs

Applying to Oxbridge

Applying to US Universities

Choosing a Degree

Choosing a University or College

Personal Statement Editing and Review Service

Guide to Freshers' Week

Student Guides

Student Cooking

Student Blogs

• Top Rated Personal Statements

Personal Statements By Subject

Writing Your Personal Statement

• Postgraduate Personal Statements
• International Student Personal Statements
• Gap Year Personal Statements

Personal Statement Length Checker

• Personal Statements By University
• Personal Statement Changes 2024

Personal Statement Template

Job Interviews

Types of Postgraduate Course

Writing a Postgraduate Personal Statement

Postgraduate Funding

Postgraduate Study

Internships

Choosing A College

Ivy League Universities

Common App Essay Examples

Universal College Application Guide

How To Write A College Admissions Essay

College Rankings

Admissions Tests

Fees & Funding

Scholarships

Budgeting For College

Online Degree

Platinum Express Editing and Review Service

Gold Editing and Review Service

Silver Express Editing and Review Service

UCAS Personal Statement Editing and Review Service

Oxbridge Personal Statement Editing and Review Service

Postgraduate Personal Statement Editing and Review Service

You are here

• Mature Student Personal Statements
• Personal Statement Editing Service
• Personal Statement Writing Guide
• Submit Your Personal Statement
• Personal Statement Questions 2025

Finance Personal Statement Example 2

Business and Finance has always been an eye opener for me, whether it’s waking up to the latest financial news headlines to reading books written by the likes of Robert Kiyosaki and Peter F Drucker. My choice of independent study has always been business related, even at a young age. From learning, how businesses are run, to understanding resource management that allows businesses to meet consumer demand whilst expanding into other areas such the financial markets. I have payed extra attention to how current events affect economies and businesses on a global scale such as the United Kingdom leaving the European union and the demonetisation of Rs500 and Rs1000 notes in India.

From amassing such knowledge and information about businesses and economies, I fell towards studying how finance is used by economic agents in terms of investing capital into financial schemes such as shares and properties. I then went on creating several demo accounts with brokers to trade on the financial markets with virtual capital, allowing me to explore the markets and learn how to read and analyse charts; testing preferred technical indicators whilst studying market movements whether trends are acting bearish or bullish.

Studying Media at A-Level was definitely the right choice for me, it allowed me to explore a wide variety of different media types, and how it is used everywhere. The area that I found particularly interesting was the manipulation of media content by mass media organisations that lead individuals to purchasing products or services, to forming certain stereotypes and opinions whilst believing false information. I found this both intriguing and alarming at the same time. Furthermore, as part of the course, I had created my sixth form their very own website allowing students and parents, to stay up to date with any news or events that the sixth form is running.

Studying Information and Communication Technology, was invaluable from learning the new developments in technology to ICT system capabilities and the dependence we all now have on technology and how we use it as an aid, to improve both efficiency and effectiveness of tasks. With a magnified interest in future developments and emerging technologies.

In my free time, I enjoy writing reviews on the books I have read during the week, which I post on my blog. I also offer tips and advice on topics such as self-management and social media marketing to my readers on other platforms such as e-mail and social media.

Confucius said: “Choose a job you love and you will never have to work a day in your life.” This quote is especially important to me because I personally believe that if you truly love what you do, it becomes a passion; a hobby. After all, work will take up a large percentage of one’s life.

As a student, I have always aspired to higher education at university as I have a committed and positive attitude to learning. I hope that my passion of business and finance, as well as my enthusiasm and determination has been demonstrated and hopefully will be of use when studying Finance at University, which will help learn new skills and overall achieve my full potential.

Profile info

There is no profile associated with this personal statement, as the writer has requested to remain anonymous.

Author's Comments

Personal Statement was literally written hours before the deadline.[I DO NOT RECOMMEND THIS - DO IT EARLY!] However, i hope this helps anyone! This would probably help those who are applying to either finance, business and economics. (i know, i spoke about media and ICT A- Levels - reason being is because i had problems with the economics and business teachers, ultimately preventing me from taking the courses.) But i did get offers from all of my options!

Good Luck people!!

This personal statement is unrated

Related Personal Statements

Add new comment.

Personal Financial Statement Template

Creating and maintaining your own Personal Financial Statement is useful for 4 main purposes: (1) Gaining a good financial education, (2) Creating and evaluating your budget, (3) Applying for business loans, and (4) Applying for personal loans.

If you already know why you need one, and why you want to use Excel to create one, then go ahead and download the template below. If you'd like to learn more about it, continue reading this page.

License : Personal Use (not for distribution or resale)

"No installation, no macros - just a simple spreadsheet" - by Jon Wittwer

If you would like to use this Personal Financial Statement in your business to assist your clients, you may purchase the commercial-use version.

Return Policy : 60 Days

License : Commercial Use

Description

• Personal Balance Sheet - for listing assets and liabilities and calculating net worth.
• Cash Flow Statement - for listing all your inflows and outflows and calculating your net cash flow.
• Details Worksheet - for listing individual account balances and the details for your properties and loans.
• Info Sheet - for listing contact info that is typically required in loan applications (e.g. names and addresses of the applicant and co-applicant).

It also includes calculations for some common financial ratios:

• Basic Liquidity (BLR) Ratio = Total Liquid Assets / Total Living Expenses :: How many months can you live on your liquid assets without any income? This ratio uses info from both the balance sheet and the cash flow statement. It's one of the really cool things that your PFS can tell you.
• Debt-to-Income (DTI) Ratio = Annual Debt Payments / Annual Income :: A ratio commonly used by lenders to determine how risky of an investment you will be. It should be below about 35% to be considered to have an acceptable level of debt. This comes from the cash flow statement.
• Debts-to-Assets Ratio = Total Liabilities / Total Assets :: Indicates the degree of leverage that is used by a person or company to finance their assets. The higher this ratio the less financial flexibility you have. This comes from the balance sheet.

Why is a PFS useful for creating and evaluating a budget?

If you have already created and follow a budget, your PFS is basically half done. A personal cash flow statement is almost exactly the same thing as a budget, except that a budget is a plan or projection, and your cash flow statement lists your actual earnings and expenses.

A cash flow statement helps you create your budget. Your budget helps you plan how you are going to allocate your net cash flow (hoping of course that your net cash flow is positive).

Why does a PFS help you increase your financial education?

Did you already know the relationship between a cash flow statement and a budget? It's not that the PFS is going to teach you directly. The point is that to accurately complete your personal financial statement you are going to need to ask a lot of questions, and probably do a lot of Google searching, to figure out why such-and-such is a liability, or what exactly is an asset, etc.

Using the template will give you a big head start, but don't assume that everything I've included in the spreadsheet is 100% correct or that it is organized optimally for your needs. Use it as a template - it is just a framework to help you get started. Verify all formulas and make sure you understand exactly how things are calculated.

Why is a PFS used in applying for loans?

A lender needs to evaluate the risk of lending money to you. One of the ways they do that is by analyzing your income and how much debt you currently have. They can get that information from your personal financial statement.

If you are applying for loans, banks will likely have their own personal financial statement (PFS) forms for you to fill out (I've linked to a couple in the references at the bottom of this page). But, if you are already maintaining your own PFS in Excel, then that will make the process MUCH easier.

The Personal Balance Sheet

Step 1: list all your assets.

An asset is something that you own that has exchange value. You may really love your pet rock, but it's probably not an asset. Your financial assets are your cash, savings, checking account balances, real estate, pensions, etc.

Watch out for the cells that are highlighted gray. These are values that come from the Details worksheet. If you overwrite the formula, you'll need to fix it.

Click on the links labeled "Schedule 1" or "Schedule 2" to go directly to the spot on the Details worksheet for entering those assets.

Step 2: List all your Liabilities

Liabilities are your debts and other unpaid financial obligations. Future expenses such as fuel for your car are not liabilities, but unpaid bills are.

Step 3: Calculate Net Worth = Assets - Liabilities

The full market value of your home is an Asset . The amount you still owe on the mortgage is a Liability . The difference is what you call call Home Equity . In a typical business balance sheet, the terms Owner's Equity or Shareholders Equity are the same as Net Worth : Owner's Equity = Assets - Liabilities.

The Personal Cash Flow Statement

Step 1: list all your inflows.

Inflows include all sources of income (wages, dividends, etc.) and whatever else puts money in your pocket.

The Inflows are grouped into "Income" and "Other Inflows", because some financial ratios are based on "Income" and not all inflows are necessarily considered income (such as tax returns, reimbursements, or gifts). You'll need to decide what should be considered income, perhaps by consulting with your accountant.

If your home or stocks increase in value, there is no cash inflow until you sell them. So, realized capital gains (the profits from the sale of property) are inflows, but unrealized capital gains (the gain in value of unsold property) are not.

Step 2: List all your Outflows

Categorizing your outflows is important if you want to calculate certain financial ratios. For example, the "Payroll Deductions" category consists of things deducted from your paycheck. The net income used by the Debt Service Ratio is your gross income minus these deductions.

Why aren't insurance premiums listed under payroll deductions? You can list them there if you want to. But, if you didn't have any income, you would still want to have health insurance, so I find that including health insurance under living expenses is more convenient for calculating the "Total Living Expenses" used by the BLR ratio.

The "Financing Activities" category of outflows is used to determine your total debt payments. That total is used by the debt-to-income ratios. For these ratios, the mortgage payment includes the escrow payment (property tax and insurance) in addition to interest and principal.

Step 3: Calculate Net Cash Flow = Outflows - Inflows

One of the first things you need to learn about personal finance is how to calculate your net cash flow. That is simply the sum of all your inflows (wages, investment income, gifts, and whatever else puts money in your pocket) minus the sum of your outflows (everything that takes money out of your pocket).

References and Resources

• SBA PFS Form (PDF) at www.sba.gov - This is an example PFS used when applying for an Small Business Association (SBA) loan.
• Cash Flow and Budgets at utah.edu - Explains how the cash flow statement and budget are related.
• SCORE PFS (Excel) at www.score.org - This is a fairly simple personal financial statement template for Excel, including only the balance sheet and details for assets and liabilities.

Follow Us On ...

Sponsored Listings  

Related templates.

Financial Statements

• Alliott Global Alliance
• Business Advisory
• International Tax & Expatriate Services
• Mergers and Acquisitions
• Outsourced Accounting
• Litigation Support
• News & Blog
• Client Login

Personal Financial Statements: Why They Matter – Part I

• Written by Marisa Pershad
• Category: News

Many are familiar with the traditional balance sheet and income statement used for reporting and record-keeping purposes by business entities. Personal financial statements, which are often underestimated in importance, serve a similar purpose by reporting the assets, liabilities and net worth of an individual, married couple or family at a point in time.

Typical personal financial statements under general accepted accounting principles (“GAAP”) include:

Statement of Financial Condition – Listing of assets and liabilities to arrive at net worth at a specified date

Statement of Changes in Net Worth – An optional statement that reports the major sources of increases and decreases in net worth

Disclosure Footnotes – Sufficient disclosures to make the statements informative

Why would you need a personal financial statement? These statements help an individual to formally organize and plan his or her financial affairs. CPAs are frequently asked to prepare, compile or review personal financial statements for use related to:

• Obtaining a loan
• Income tax planning
• Estate planning
• Retirement planning
• Public disclosure of personal affairs for public officials and candidates running for public office

SPECIAL PURPOSE FRAMEWORKS Personal financial statements generally should be prepared under GAAP; however, they can also be prepared using “special purpose frameworks.” Special purpose frameworks include cash, modified cash, tax and historical cost bases.

The benefit of preparing personal financial statements prepared in accordance with a special purpose framework is the ability to present financial statements on the basis of accounting normally used by an individual without listing each departure from GAAP. However, the Financial Accounting Standards Board (FASB) recommends the presentation of personal financial statements under GAAP regardless of the basis the individual uses to keep their records.

Therefore, our primary focus for the purposes of this blog will be financial statements as presented under GAAP, which require assets and liabilities under the accrual basis to be reported at their estimated current values and amounts.

TERMS DEFINED FASB defines the estimated current value of assets as “the amount at which the item could be exchanged between a buyer and seller, each of whom is well informed and willing, and neither of whom is compelled to buy or sell” and states that liabilities should be reported at their estimated current amount, or “the discounted amount of cash to be paid.” Net worth is defined as the difference between assets and liabilities after deducting the provision for income taxes.

As previously discussed, personal financial statements consist of the “Statement of Financial Condition” and “Changes in Net Worth.”

Statement of Financial Condition The Statement of Financial Condition includes the following:

• Assets stated at their estimated current values, in order of liquidity and maturity
• Liabilities stated at their estimated current amounts, in order of liquidity and maturity
• A provision for income taxes on the difference between the estimated current values of assets and the estimated current amounts of liabilities and their tax bases
• Net worth at a specific date

Statement of Changes in Net Worth The Statement of Changes in Net Worth include the following increases and decreases to net worth:

• Increase or decrease in the estimated current value of each asset
• Increase or decrease in the estimated current amount of each liability
• Increase or decrease in the provision for income taxes

DISCLOSURES Disclosures may be in the body of the financial statements or in the footnotes. Disclosures can vary greatly depending on the complexity of the individual assets and liabilities. Examples of common disclosures include:

• Specific identification of the individuals covered
• Disclosure of the reporting framework (i.e. “GAAP”) and confirmation that the assets are presented at their estimated current value and liabilities at their estimated current amounts
• The method used to determine the estimated current value of assets or the estimated current amount of liabilities, or the method used in determining the major grouping of asset and liabilities
• Description of changes in the methods used, if different from one period to another
• If property is held in a joint venture or jointly, description of the nature of the individual’s ownership and ownership of the other parties
• The name of the company and percentage of ownership
• The nature of the business
• Summary of the assets, liabilities, and results of operations for the most recent year which should include the reporting framework used by the entity
• The face amount of life insurance owned
• A description of intangibles and their estimated useful lives
• Methods and assumptions used to estimate the provision for income taxes
• A statement that the income tax provision will differ from the amounts eventually paid, since the provision is calculated using information such as tax laws and regulations in effect which may change when the disposal, realization and liquidation actually occur and the taxes are paid
• Unused operating losses
• Capital loss carryforwards
• Details relating to receivables and debts such as maturities, interest rates, collateral, and other information deemed pertinent

The purpose of this blog was to present an overview of the reasons for which you would need a personal financial statement, the components included and the basis under which a personal financial statement can be prepared. In Part II of this series, we will discuss how the estimated current value of assets and liabilities is determined.

FOR MORE INFORMATION Putting together a personal financial statement can be a daunting task, depending on the complexity of your individual assets and liabilities. The components you will need to consider when undertaking the preparation of personal financial statements will differ based on your specific scenario, and for that reason it is always recommended that you consult with your financial and/or accounting advisor(s) to ensure you are taking all necessary steps into account. Here at FF&F our experienced staff will act as your advisors before and throughout each of these steps to help you confidently compile your personal financial statements. For more information on this topic, or to hear more about our services, please contact us at [email protected] or (212) 245-5900.

Personal financial statements. (includes related article)

• My Portfolio
• YF Chartbook
• Trending Tickers
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• World Indices
• Top Mutual Funds
• Options: Highest Open Interest
• Options: Highest Implied Volatility
• US Treasury Bonds Rates
• Currency Converter
• Latest News
• From the Newsroom
• Stock Market News
• Economic News
• Morning Brief
• Personal Finance News
• Crypto News
• Bidenomics Report Card
• Yahoo Finance Invest
• Yahoo Finance Live
• Options 101
• Good Buy or Goodbye
• Research Reports
• Investment Ideas
• Community Insights
• Saved Screeners
• Equity Screener
• Mutual Fund Screener
• ETF Screener
• Futures Screener
• Index Screener
• Analyst Rating Screener
• Technical Events Screener
• Smart Money Screener
• Top Holdings Screener
• Credit Cards
• Personal loans
• Car insurance
• Home Buying
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate

S&P 500

Russell 2000, bitcoin usd, cmc crypto 200, 7 best personal statement writing services for colleges and grad schools.

Get Professional Help from USA and UK Companies

New York City, New York --News Direct-- Writing Solutions

When you are in college, you have to write a lot of papers and essays. And it doesn't get any better when you graduate. You must submit applications for internships, scholarships, and jobs — all of which require writing an essay in some form. And even if there isn't a formal writing requirement, many people prefer to send their resume with a cover letter rather than just sending their resume by itself.

Everyone knows that what matters in your college admission process is your GPA and SAT/ACT scores. But it's not the only thing that matters - your personal statement matters so much! It's important for you to stand out from other students and show why you're the top candidate for that university. That's where a good personal statement help will get you the results you want.

This is an important tool that students, particularly at the high school level, need in order to be admitted to a university or college of their choice. The entire process of writing one needs help, especially if you haven't had experience before or if English is your first language.

But what if you are not a good writer, or don’t have any idea how to write a personal statement? There are TOP 7 professional writing services that can help you craft one that will impress the administration and boost your chance of getting into your chosen school.

99Papers - #1 personal statement service for colleges

PaperHelp - The best personal statement service in the USA

EssayFactory - UK-based company for law school papers

EssayBox - Highest Quality Paper Writing for grad school

Ivory Research - Professional UK writers

Studdit - Medical school personal statement writing company

Expert-Editing - The best statement editing provider

Here are reviews of the best personal statement writing/editing services to help you get started on your path to the college or grad school you choose.

#1. 99Papers

99Papers is a personal statement writing service that helps students write outstanding college application essays. With their high-quality writers, you will be able to write an essay that will help you get into the school of your dreams or improve your grade average.

They offer additional services, such as resume writing, proofreading and editing, personal statement editing, recommendation letter writing, and much more. All of their efforts are geared toward helping you succeed.

Since 2008, they have helped many students improve their writing with quality academic assistance. They are a team of professional writers with years of experience helping students like you write their college application papers. Because they've been in the business for so long, they know exactly what colleges are looking for in an essay and how to tailor your writing style to match their expectations. Your essay will stand out from the rest by working with a professional writer and you'll be accepted to your dream college!

Their process is very easy and streamlined for efficiency. You can speak with a 99Papers customer service agent by phone or chat to discuss your needs and how they can help you. Your information is never shared with any outside parties, so you can rest assured your personal data is safe.

Pricing varies by task and the number of pages ordered. You will be paired with a writer who is knowledgeable about the topic of your paper and knows what needs to be included for you to get passing scores.

Advantages:

Top-quality writing;

100% error-free;

Unlimited revisions;

Reputable company - rated 9.9;

Great customer service;

Professional services;

Affordable pricing starts at $9.95 per page;

Discounts for repeat orders.

Disadvantages:

A plagiarism report is available, but for an additional cost.

#2. PaperHelp

PaperHelp is a professional personal statement and SOP writing service with over 10 years of experience helping students to succeed in their studies. They take pride in the fact that they help more than 20,000 students every year. Some of the students who came to them for assistance were able to get into some of the most prestigious universities in the world, including Harvard, Oxford, and Cambridge.

Its mission is to work with clients to ensure they get the best writing services at affordable prices. The writers are experts in their fields and their know exactly how to help you succeed academically. No matter what your academic goal is, PaperHelp can help you reach it!

The process is easy. Just fill out their order form and then upload your materials or give them an outline for your paper topic. They will provide a free quote for your project so that you know exactly what their writers charge for their work before placing an order. Once you place an order, they will assign one of their professional writers to your project and they will begin working on it immediately after receiving all of your requirements. You are able to communicate with them via email at any time during this process if needed.

Prices vary by the level of writer skill & experience (intermediate or industry expert) and the number of pages needed. The type of content will also determine the level of skill necessary to accomplish your task.

High-quality content;

Affordable pricing;

Editing/proofreading;

Budget-friendly at $9.95 per page;

Discounts are promo codes.

Plagiarism reports are included for an additional fee;

Source materials are available, for an additional fee.

#3. EssayFactory

EssayFactory is your one-stop shop for all of your academic writing needs. Their company provides professional writers from UK to compose your essays, term papers, personal statements, SOP, research papers, and more. With hundreds of writers in their network, you can be sure to find a writer that meets your needs.

They have been around since 2002 and have worked with thousands of students from all over the world. Their clients come from all walks of life and from various countries, such as Australia, Canada, United States, United Kingdom, Malaysia, Singapore, Indonesia, and many others.

Working in this industry for so many years, they understand how stressful it is when you have an important essay or term paper coming up while still having to juggle other commitments like projects and assignments.

EssayFactory is staffed by professional writers who have earned degrees from some of the most prestigious universities in the world. They know exactly how to put together a winning application package that will impress admissions officers.

Their website is easy to navigate, so you can find answers to your questions immediately. They also have customer support via chat available 24/7 for questions or last-minute orders. If you need resume writing help or editing for a different project, they can help you with that too.

You are always in control of your project. They offer unlimited revisions if you are unhappy with any part of your delivery. They have a good reputation for delivering quality material, which is probably due to the fact that they employ expert writers and offer revisions at no extra cost.

Unlimited edits/revisions;

24/7 customer support;

Professional UK writers;

Slightly higher pricing for services (starts at $11 per page);

Discounts available.

Lacks some of the personalized aspects of previous services

#4. EssayBox

EssayBox is another professional writing company that offers personal statement writing help for students of all academic levels. They offer professional writers and editors to help you with all your academic assignments. Top-notch writers are ready to take on any assignment, whether it's a research paper, an essay, or even a dissertation.

Due to their experience working with students, they know how important it is to meet deadlines. Therefore, they offer 24/7 services year-round!

Whatever subject you're studying or whatever assignment you need help with, they will do their best to assist you.

The company has been operating since 2005 and they have helped thousands of students achieve their goals by providing them with high-quality, custom-written papers and other types of academic content. Their team consists of experienced writers who know how to meet even the most challenging requirements in their field of study. Quality and plagiarism checks are done using anti-plagiarism software before delivery to the client.

They are competitively priced to be affordable so that every student can afford them - especially those who are struggling financially because they are not sure whether they will be able to complete their coursework on time or not.

The goal of their service is to make sure your application stands out and gets you accepted into the college or university of your choice. EssayBox is staffed by a team of professional writers who will help you craft a perfect personal statement that will grab the attention of admissions officers at the schools of your choice.

Expert writers & editors;

Professional writing;

Error-free;

Plagiarism-free;

Knowledgeable on any topic;

Unlimited revisions.

Pricing is higher at $12 per page, but you do get free ad-ons.

#5. Ivory Research

Ivory Research is a company similar to the ones above that offers professional writing for students applying to colleges, graduate programs, and high schools in the United Kingdom. They work with clients from all over the world on projects ranging from personal statements to supplemental essays to admission tests like the SAT or GRE. They also offer editing services for papers written by students in high grad school or college as well as professionals in various fields such as medicine or law.

Ivory Research offers editing services as well as editing proofreading services for those who wish to improve their existing work or just want a second opinion on their paper before submitting it.

What’s unique about this service is that they don’t just cater to students, they provide a whole list of services for people outside of the academic world as well. If you’ve been given the task of writing a business plan for an upcoming meeting but are struggling with writer’s block, this will definitely give you the break you need to refocus your thoughts and efforts.

Many years of experience (in business since 2005);

Quality and plagiarism checks prior to delivery;

24/7 live support via chat & email;

Many of their writers hold bachelor’s or master’s degrees.

Pricing is not stated clearly on the website, you have to start an order to find out the amount;

You are required to put down a deposit;

The pricing structure is much higher than other services at $100 for a 1,000-word essay. Shorter text is $60 for 250 words.

#6. Studdit

Studdit is a newest medical school personal statement editing and writing company for college and grad school students. They provide high-quality editing and proofreading services for students who need help with their essays, personal statements, applications, CVs, and cover letters.

As part of the process, they'll ask you questions about yourself, your academic history, and why you want to study at a university in the USA or in the UK. Then they'll help you express yourself in the best possible way by editing and proofreading your statement until it sounds just right.

After submitting your requirements, you’ll be assigned a professional writer who will work on your paper until it is ready to be submitted. Once the final payment has been received, you will receive a draft copy of your essay so that you may review it before making any changes if necessary. After receiving confirmation from you that the draft sent to you has been accepted, the final draft will be completed.

The application process for college can be very stressful, which is they offer services at an affordable price. This company was founded by college students who wanted to help others through this process, and are passionate about helping you succeed!

Many options to choose from;

Certified writers;

Email & text alerts;

3 free revisions included.

Pricing is higher than others at $13 per page, with higher pricing for certain types of high-level writing.

#7. Expert-Editing

Expert-Editing is a personal statement writing/editing provider that offers affordable, high-quality, and expertly written personal statements. They have helped thousands of students secure their dream university placement.

Their professional writers have written over 10,000 personal statements for students from around the world. Many are highly qualified and experienced professionals with degrees in English Literature, Linguistics, or other related subjects.

They will ensure that your essay is well written in accordance with Harvard, Yale, and Stanford standards.

The company has worked with many schools over the past few years to understand what makes a good personal statement and has even created an entire section on their website to help people write their own personal statements.

After the writer has finished the first draft, you will receive a copy of your essay to review. If there are any changes that need to be made, those changes will be made and you will receive another proofread version of the paper.

Upon your approval of the final draft, we will send your electronic copy as well as a hard copy to the email provided.

Intuitive website;

Quick deadlines;

Plagiarism and quality checks.

Pricing is the highest of the services mentioned at $13 per page, although that is for quick delivery. If you have a flexible timeline, two weeks is much less expensive.

What is a personal statement?

A personal statement is a short description of your background, interests, and goals. It is usually required as part of the application process for university, college, graduate school or postgraduate. The purpose of this essay is to give admissions officers an insight into who you are as a person and why you would make an excellent student at their school. This essay allows you to show off your personality through your writing style and provide concrete examples of how you will excel in your program.

In addition to an academic transcript and test scores, your personal statement can make or break your chances of being accepted into a university or college program. While grades and test scores are important pieces of information that allow admissions officers to make informed decisions about whether or not they want to admit you, it's up to them whether or not they really want to spend time getting to know you better by reading your personal statement.

By reading these essays, they get a glimpse into your personality and character as well as your interests outside of academics. These essays also allow them to identify students who have overcome significant challenges or obstacles during high school, which can be very impressive!

A personal financial statement is a document that describes your financial situation. Your personal financial statement can be an important tool if you are applying for credit cards, loans, or insurance policies. You may need to provide a copy of your personal financial statement when applying for certain types of services or loans.

Why is it required for colleges? A personal financial statement is used by government agencies and nonprofit organizations to determine eligibility for certain programs, including student loans and grants. By submitting a personal financial statement with your application, you can demonstrate your ability to pay tuition fees or other expenses associated with attending college. Some colleges also require applicants to supply parents' income information as part of their financial aid packages.

In addition to being required by banks and other lenders, your personal financial statement can also be used by insurance companies and employers when deciding whether or not they want to hire someone or offer them employment benefits such as health care coverage and retirement plans.

Depending on your income for the previous year, you may be eligible for additional grants that you might not otherwise know about.

What is a personal mission statement?

A personal mission statement is a short statement that describes who you are, what your values are, and what you want to accomplish in life. It’s a great tool for developing a sense of purpose and direction, especially during times of transition such as college applications.

Your personal mission statement should be written in the first person and be concise. It’s also important to keep in mind that your personal mission statement should not be limited to academics or college admissions; it can be used throughout your life to guide decisions about jobs, relationships, and other major life events.

A well-crafted personal mission statement can help you stand out from other applicants by giving the reader insight into who you are beyond grades, test scores, and activities. It allows them to see your passions, strengths, and weaknesses from your own point of view instead of an outside source like a teacher or counselor. The most effective statements are those that are honest, specific, and concrete so they can be read with ease by anyone who reads them (whether they be admissions officers or future employers).

What is a law school personal statement?

The personal statement as it applies to law school is your chance to let the admissions committee know who you are. You may write about any aspect of your background, including your professional experience, extracurricular activities, volunteer work, or any other information that you believe will help the committee decide whether or not they should admit you into their program.

Many top-tier law schools receive thousands of applications each year, and cannot review every single one individually; instead, they rely on standardized tests like the LSAT and GPA as well as their application essays in order to determine which applicants are best suited for their programs.

A strong application essay can be the deciding factor between admission and rejection because it gives an insight into who you are as a person rather than just an academic score or LSAT score alone could ever provide.

What is a medical school personal statement?

A medical school personal statement is an essay that describes your reasons for applying to medical school, your preparation for and commitment to this career path, your strengths as a future physician, and any other information that may be relevant to the admissions committee.

Medical schools ask for this essay because they want to get to know the “real” you before making a decision about whether or not they want you in their program. In addition, because there are so many applicants for each spot at medical school (the average student applies to 8-10 programs), it helps them sort through all the applications quickly and easily.

These essays are very helpful in assessing your personality and ability to communicate effectively. Since they only have one chance at getting into medical school (unlike undergraduates who can take multiple tests), it’s very important that students show themselves off in their best light with this essay.

What is a personal vision statement?

A personal vision statement is a 2-3 sentence statement that describes what you want to do with your life and how you're going to get there. It's a way to tell the admissions office what excites you and what you want to accomplish.

Colleges are looking for students who have specific goals, who know what they want out of their education and beyond, and who have the drive and focus needed to achieve those goals. Your personal vision statement can help them identify those qualities in you.

Your statement should be honest, but it doesn't need to be long or complicated. Think about what your top priorities are in life right now, and how college fits into those priorities. What do you want to pursue after graduation? What kind of impact do you hope to have on the world? How will attending this particular school help advance your goals?

Your goal is not only to demonstrate your strengths as an applicant but also to show that you're someone who's thoughtful enough about his/her own life goals to articulate them clearly in writing).

What is a residency personal statement?

A residency personal statement is a written piece of writing that describes the reasons for pursuing residency. It is usually written by medical school applicants and can vary from one medical school to another.

The residency personal statement is meant to show your enthusiasm for medicine and express why you are interested in becoming a doctor. Your residency personal statement should be honest about your motivations for applying for medical school, but it should also be specific enough to convey the unique aspects of your personality that will make you an excellent physician.

Writing a residency personal statement can be difficult because there are so many ways to approach the task. The most effective way is to write down everything that comes to mind and then organize those ideas into a coherent narrative based on your own experience with medicine or healthcare.

Is it legit to use a personal statement writing services?

It is indeed a very common thing to do these days. A lot of students are opting for the help of professional writers to write their personal statements. The reason is obvious; they want a high-quality personal statement that can get them into their dream college. But there are a lot of people who think that this is plagiarism, which is against the rules. It is not however if you use the paper as research for writing the copy in your own words.

Plagiarism is submitting someone else’s work as your own. These services do not intend for you to hand in these papers as your submission. They expect you to take inspiration from their writing and understand how it is to be formatted when writing your own. That is what makes them a legal business.

The truth is that most college students have no idea how to write a personal statement, let alone the first thing about what to include in it. This is one of the reasons why many students struggle when it comes to writing their college essays . However, there are many personal statements writing services that you can use if you don't have any idea how to write your own personal statement.

How to hire the best personal statement writer?

When you are looking for a personal statement writer, you should look for someone who has a good understanding of the college application process. The personal statement is the most important part of your application, so it needs to be written by someone who can understand your situation and help you craft an effective essay.

The first step in hiring a personal statement writer is to find out what kind of experience they have. You need to make sure that they have written college admissions essays before. If they haven't, then they probably won't be able to provide you with the help that you need, which means that it would be better to hire someone else instead.

You should also look at their previous work when deciding whether or not someone is right for your needs. It's important that you ask for samples of their work before hiring them so that you can see what kind of quality they offer their customers. If their samples don't impress you, then it might be best if you continue looking elsewhere for help with your personal statement.

Going with one of the top-rated writing services, like 99Papers , will ensure that you find a writer who meets your needs at the right price. They have done all the work for you.

What is the best personal statement writing services in USA and UK?

The most important thing in a personal statement is that it should be authentic and not exaggerated. You should be able to show your own personality in it without trying to sound like someone else. You must be able to convince the reader that your desire for higher education is genuine and sincere.

The best personal statement writing/editing companies in USA and UK will give you an idea about how to write such kinds of essays effectively so that they impress the readers easily. They will help you write an inspiring statement that will convince them that you are really interested in pursuing higher studies at their institution of choice.

When choosing the best personal writing services in the US or UK, you should opt for PaperHelp or EssayFactory. If you are a first-time student, they can help point you in the right direction and give you the help you need to get the placement you want.

In the end...

While some students may be deterred by the idea of paying for an online service to write their personal statement, it is essential to remember that this is one very important document that could make or break your application. The fact that you don't know how to begin properly shows fear, and fear never managed to get anyone into a great university.

If you want nothing but the best for yourself and want a worry-free process, then hire a professional service to help you write your essays and personal statements. You’ll get 100% unique content written for you by industry experts that will inspire you to create a stunning application that is sure to get you into Harvard.

Contact Details

Writing Solutions

Will Collins

[email protected]

Company Website

https://legitwritingservice.com

View source version on newsdirect.com: https://newsdirect.com/news/7-best-personal-statement-writing-services-for-colleges-and-grad-schools-761574187

Recommended Stories

These are the top 10 holdings of bill gates' $42 billion stock portfolio.

The portfolio is unique in that it owns concentrated positions in less-heard-of companies, like Coca-Cola FEMSA, which is a Mexican soda bottler.

After Nvidia’s latest blowout, here are 20 AI stocks expected to rise as much as 44%

With Nvidia Corp. reporting another set of amazing numbers, it’s time for a broad look at the artificial-intelligence landscape to see which stocks are most favored by analysts.

The Bond Market Is Doing Something Not Seen in Decades. It Could Signal Trouble in the Stock Market.

The U.S. economy is seemingly on solid ground, but the Treasury bond market is sounding its most severe recession alarm in decades.

Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes

Warren Buffett credited his longtime partner — the late Charlie Munger — with being the architect of the Berkshire Hathaway conglomerate he has received the credit for leading and warned shareholders in his annual letter Saturday not to listen to Wall Street pundits or financial advisers who urge them to trade often. Buffett said he always writes his letter with smart, long-term investors like his sister Bertie in mind and tries to tell them what he thinks they would like to know about Berkshire. “She is sensible – very sensible – instinctively knowing that pundits should always be ignored,” Buffett wrote about Bertie.

Forget Nvidia: AMD Could Be Super Micro Computer's New Best Friend

Supermicro plans to diversify its business away from Nvidia by producing more AMD-powered servers.

3 Stock Splits That Could Be on the Way After Walmart's

The price is right for these companies to conduct stock splits.

Warren Buffett's Most Baffling Decision in Q4 -- and Why Buying This Stock He Sold Could Be a Brilliant Move

Berkshire Hathaway's unloading of this position is perplexing.

3 Dividend Stocks to Make Retirement a Piece of Cake

These are solid businesses that can pay you passive income for the rest of your life.

Here Are My Top 5 Undervalued Growth Stocks to Buy Right Now

The market is still full of great companies to buy.

Billionaire Investor David Tepper Has 46% of His Portfolio Invested in 5 Brilliant Artificial Intelligence (AI) Growth Stocks -- but Made Some Big Changes During the Quarter

The fund manager has decreased the value of some of his biggest holdings by as much as 16%.

Palo Alto Networks Is Making a Bold But Risky Bet to Dominate Cybersecurity

Palo Alto Networks shares plunged 28%, vaporizing almost $34 billion in market value after it revealed its new strategy.

1 Top Cryptocurrency to Buy Before It Soars 4,500%, According to Cathie Wood's Ark Invest

A big shift in the market could be a major catalyst for growth.

I’ve been diagnosed with dementia. I suddenly could not spell or write legibly: ‘I don’t want my wife to lose everything.’

“I am getting worse, so I want to protect my wife of 24 years, and our finances.”

Will Palantir Technologies Be a Trillion-Dollar Stock by 2035?

Does Palantir have what it takes to make it into the elite $1 trillion club?

2 Artificial Intelligence (AI) Stocks That Could Go Parabolic

Nvidia isn't the only artificial intelligence stock to put on your radar.

Tesla-beating BYD and other Chinese carmakers using Mexico as back door poses ‘extinction-level’ threat to U.S. auto sector, warns trade group

The Alliance for American Manufacturing sounded the alarm in a report issued Friday.

History Says the Nasdaq Could Soar in 2024: 1 Artificial Intelligence (AI) Stock to Buy Hand Over Fist Before It Does

Amazon is quietly making some disruptive moves in artificial intelligence that could meaningfully impact its core businesses.

Nvidia Stock: Headed to $1,100?

Despite the tech stock skyrocketing almost 240% in 2023 and more than 55% in 2024, this analyst thinks shares could soar even higher over the next 12 months.

2 Growth Stocks to Buy and Hold Forever

Stock market returns are best measured in decades rather than days or months.

Alphabet (NASDAQ:GOOGL): Undervalued and Overlooked Magnificent Seven Stock

Magnificent Seven stocks have attracted plenty of buzz as investors gravitate toward their vast market share and exceptional returns. Every Magnificent Seven stock has more than doubled over the past five years. These assets have significantly outperformed the market during that time. However, Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) has been a largely underappreciated stock. The corporation has amassed a $1.75 trillion market cap and is up by 56% over the past year. Still, that gain falls behind m

Financial Services Personal Statement

For the last 19 years I have been fortunate to have had many professional opportunities within the financial services vertical that taught me strategy, marketing, finance, and leadership. The last 3+ years I have been focused on the challenge of the ever changing consumer experience, driven by the adoption of digital technology, and developing a content strategy and marketing plan that allows our brand to reach and engage with customers and prospects outside of the “traditional” marketing channels. From this challenge, my passion for how digital and emerging technology is changing and driving the consumer experience with brands was born. While I have accomplished a lot, my professional accomplishments have been limited to the financial services

Click here to unlock this and over one million essays

Taking A Look At TD Canada Trust

“Bank Human 3.0” ad campaign demonstrates TD Bank’s commitment to connecting seamlessly over multiple channels. TD is actively engaging with current and future customers on major social media sites such as Facebook, Twitter and YouTube (Media Room, 2016). TD as a brand, from a vision standpoint, is really focused on being ‘better’ – not the best. “When you are the best, you settle. When you are better, everyday, you are trying to do more.”

Time Ain T Money Rhetorical Analysis

Society is in the “now” stage, and CEO’s should take after Pepsi and look for ways to increase demand through social media, while being humble to the employees of their own

Xacc/280 Week 1 Personal Reflection

At Edelman Digital, I volunteered as a mentor with the Junior Achievement of New York (JANY) and the Manhattan Business Academy. As mentors, we assisted students as they took part in the Manhattan Business Academy’s annual Business Plan competition. It was an extremely satisfying experience as I am aware this program helps to support our community by making a difference in the lives of many underprivileged students. In addition to being a JANY mentor, I also serve as a mentor for the 4A 's Project Act Mentorship program providing individualized mentorship to a student who attends the High School for Innovation in Advertising and Media. As a mentor, I share information and insights on the digital media landscape and help to develop the competencies needed to pursue a career in the advertising and media

Tax And Health Personal Statement

Tax and health are two major components involved in our daily life. Public needs to be educated with general knowledge and informed with available service of both. Currently, I am a volunteer at Sparrow Hospital (Lansing, MI). In addition, I want to serve local public in a different way(tax) and I am capable to do it, such as , become a member of Taxpayer Advocacy Panel. I have been a medical researcher and teacher for over 20-year.

Verizon Mission Statement

At the company’s inception in 2000, then Chief Executive Officer, Dennis Strigl, deliberately shaped and developed Verizon Wireless’ mission statement. He purposely ensured the mission statement not only described the reason for Verizon’s existence, but also distinctly defined its organizational values, desired culture, and exemplified how employees should interact with customers, competitors, suppliers, their communities, and team members (Verizon (USA), n.d.). “We focus outward on the customer, not inward” and “we know teamwork enables us to serve our customers better and faster” (Verizon (USA), n.d., p. 1) are two among many other declarations within the Verizon’s mission statement/credo that exemplify Verizon’s commitment to its customers

Real Estate Personal Statement

Ever since I can remember I have always been interested in real estate: reading the real estate newspaper advertisements as a child, reading books about income properties as a teenager, taking real estate courses in my undergraduate studies, and, more recently, reading books about the sub-prime mortgage crisis and various articles. As I intend to work in the real estate industry upon graduation, I think that the Baker Program is the natural next step in my pursuit towards becoming a real estate professional. Although I am currently in the process of obtaining a graduate degree in Business Administration from the Johnson School of Management and will be taking a few real estate classes this spring semester, I feel I need to increase my depth

Having lived in the area for over 25 years, I am deeply rooted in the business and social networks. I take the greatest of pride in being friendly, when possible. Yet, I have the natural competitive nature, passion for real estate, and ability to be aggressive, when necessary, to help every client get the best deal and terms. Born in Guayaquil, Ecuador, I am fluent in both Spanish and English. At age seven, I moved to Miami.

Ever since I was a little, I was fascinated in going to other people’s homes and exploring new neighborhoods. Once I turned twelve I realized my interest in real estate. Every time I went to one of my friends’ houses I always took a tour of every room and left no door unopened. I even searched up apartments in my neighborhood during my free time and compared prices. When I turned thirteen years-old, I went to the Town Residential real estate firm down the block from me and asked for an internship there.

Statement Savings Account

Statement Savings Account would be the type of savings account best for me . Deciding which account will pay the most interest is important to me, but knowing that my money is safe is primarily important to me . Therefore, reciving account statement is an important way to know that my account is safe . An account statement gives all balances, and a list of transactions and positions amidst a broker and a client. Certificate of Deposit and Money Market Savings Account does not give clients account statements.

Starbucks Differentiation Strategy

One of their key strategies in meeting this goal is a focus on customer service in order to create an experience for its consumers. Another one of their strategies is to ignite their emotional attachment with consumers. They also have

The Digital Marketing Strategy: Starbucks And Digital Marketing Strategies

The initial Starbucks established in 1971, it set out to be a different kind of company. One that not only just passionately committed to world-class coffee and the rich tradition, but also the way they engage with customers and communities to do business responsibly. Today, Starbucks has become a great example of an iconic brand and operates worldwide. The brand has strengthened their consumer engagement with the use of digital marketing strategies. In this essay, the author… Technology has developed throughout the last decade at a great rate to make human’s lives more convenient.

Fashion Management Personal Statement

After the meeting, I realised the importance of a well-integrated management structure within creative industries, as it plays a central role in bringing a creative vision to life while ensuring its financial feasibility and profitability. My internship at Dell EMC with the Channel Marketing team required me to work with internal marketing tools to ensure that channel partners were branding the company and its products in accordance with the newly issued brand

Dermal Filler Marketing Strategy

Digital marketing isn’t simple as many people think. There are numerous cases of these strategies failing for some service providers. Studies reveal that digital strategies fail for some people because they do it for themselves or hiring a young and inexperienced computer marketing Companies. Experienced agencies have experience handling numerous tasks. Additionally, they have hired experienced technicians.

Impact Of Digital Marketing And Online Brand Alliance

TCii (2011) describes the importance of digital marketing that as the world is moving from analogue towards digital, people are consuming more and more digital content on a daily basis just as increased usage of mobiles, computers at works laptops and other gadgets-the companies who have yet not recognized this in their marketing strategies need to adopt it fast. The pace at which world is focusing on digital marketing it is possible that soon it will eliminate the traditional forms of

Disadvantages Of Digital Business

The aim of this report was to research and understand what exactly digital means, the importance of the digital world to companies today and how they use it to the best of their ability for the positive performance of their business. Through our research of academic and peer reviewed articles and journals we learn how digital space can provide a world of opportunities to organisations as we focus in on the hospitality industry and the hotels who make the most of the digital platforms available. We are aware that many companies are rushing to become digital in order to reap the awards of these opportunities, but we look at how they surge to be effective or in some cases fail and see a decline in their digital popularity scale. North, 2014 discusses how consumers have little or no loyalty to brands and are willing to move from one digital platform to another as technology changes. Yvonne – Introduction (600) Aoife – Conclusion & Part A (800) Nadia – Referencing & Formatting & Part B (300) John – Technology Paragraph.

More about Financial Services Personal Statement

Related topics.

• English-language films

My favourite subject that I am currently studying is economics. Economic issues have become increasingly prominent in political and current affairs, and for me to understand such issues was the principal reason for me choosing to study economics... Economics and Finance Personal Statement Example 5 they operate.

A personal financial statement, or PFS, is a document or set of documents that outlines a person or family's financial position. The balance sheet portion of a PFS exhibits your assets and liabilities, or net worth. Some people create more detailed personal financial statements, including an income statement or other documents.

Postgraduate Accounting and Finance Personal Statement Example (Mature Student) 1. Currently, I am a final-year student, studying International Economics and Trade at xxx University. I would like to increase my professional potential in Finance related field by pursuing Master studies at your university...

A Personal Financial Statement is a snapshot of your personal financial position at a specific point in time. It lists your assets (what you own), your liabilities (what you owe), and your net worth. To get your net worth, subtract liabilities from assets.

Definition A personal financial statement is a physical snapshot of your assets compared to your liabilities. It gives you a real-time view of your wealth and helps you assess your current financial situation. While it's beneficial for your own financial growth, lenders may ask for a personal financial statement if you're applying for a loan

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.

The term personal financial statement refers to a document or spreadsheet that outlines an individual's financial position at a given point in time. The statement typically includes general...

A Personal Financial Statement gives you a clear idea of how you're doing financially at any point in time. It's also a great tool to bring with you when applying for a loan. Before you start any journey, you need to know where you are.

A personal cash flow statement measures your cash inflows and outflows to show you your net cash flow for a specific period. Cash inflows generally include: Salaries. Interest from savings ...

A personal financial statement is a document that summarizes your assets, liabilities, and net worth. A PFS can help you understand your financial health so you can make informed decisions about your money. A personal financial statement template will typically include three sections:

A personal financial statement is a report or set of documents that summarizes an individual's financial situation at a particular time. It is often divided into two sections: the balance sheet and the income statement. The balance sheet provides a breakdown of assets and liabilities, while the income statement summarizes income and expenses.

Finance Personal Statement. ... This firm would provide a range of financial services to both companies and public institutions. I recognise that achieving this goal will require years of experience, cultivating the right connections, and personal determination. Pursuing an MSc in Finance from LSE will better equip me to manage corporate ...

Office Hours: 9am - 6pm, Monday to Friday UK Address Personal Statement Service. The Old Dairy 12 Stephen Road Headington, Oxford, OX3 9AY United Kingdom. VAT Number 425 5446 95. 24/7 0800 334 5952 London 020 364 076 91 [email protected]

A personal financial statement is an overview of a person's financial situation at a given time. It includes a list of their assets, liabilities, income, and expenses to calculate the person's net worth and monthly profit/loss. How to Prepare a Financial Statement

Personal Financial Statements: Balance Sheet In personal finance, we discuss our net worth or the total value of our assets fewer debts. Businesses have the exact same thing, but they call it a balance sheet.

Personal Financial Statement. Download the free Excel template now to advance your finance knowledge! A personal financial statement is a document or set of documents that outline 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.

Personal financial statements, which comprise a balance sheet and cash flow statement, provide a snapshot of your financial health, allowing you to evaluate your current financial condition, track changes over time, and plan for the future.

February 15, 2024. A personal financial statement is an overview of a person or household's finances. Unlike a budget, a financial statement doesn't track every dollar earned or every expense throughout a period. Instead, it's a snapshot of their financial standing at any given moment. Read on to learn what goes into a personal financial ...

Finance Personal Statement Example 2. Business and Finance has always been an eye opener for me, whether it's waking up to the latest financial news headlines to reading books written by the likes of Robert Kiyosaki and Peter F Drucker. My choice of independent study has always been business related, even at a young age.

Creating and maintaining your own Personal Financial Statement is useful for 4 main purposes: (1) Gaining a good financial education, (2) Creating and evaluating your budget, (3) Applying for business loans, and (4) Applying for personal loans.. If you already know why you need one, and why you want to use Excel to create one, then go ahead and download the template below.

Personal financial statements generally should be prepared under GAAP; however, they can also be prepared using "special purpose frameworks." Special purpose frameworks include cash, modified cash, tax and historical cost bases. ... For more information on this topic, or to hear more about our services, please contact us at [email protected] ...

Personal financial statements. (includes related article) by Mancuso, Anthony J. Abstract- Personal financial statements can serve high net-worth individuals in a variety of ways.These financial statements, seldom used by the average individual, can help those who are affluent to obtain loans, enter into various investment transactions, develop financial plans or even run for public office.

99Papers - #1 personal statement service for colleges. PaperHelp - The best personal statement service in the USA. EssayFactory - UK-based company for law school papers. EssayBox - Highest Quality ...

The personal financial statement must be complete, legible and accurate. 2. If you need additional space to answer fully any of the categories or questions above, please use the space below and attach separate pages as needed. 3. A copy of your most recently filed federal income tax return must be submitted with each financial statement ...

Financial Services Personal Statement. 397 Words 2 Pages. For the last 19 years I have been fortunate to have had many professional opportunities within the financial services vertical that taught me strategy, marketing, finance, and leadership.

Essay on Corruption for Students and Children

500+ words essay on corruption.

Essay on Corruption – Corruption refers to a form of criminal activity or dishonesty. It refers to an evil act by an individual or a group. Most noteworthy, this act compromises the rights and privileges of others. Furthermore, Corruption primarily includes activities like bribery or embezzlement. However, Corruption can take place in many ways. Most probably, people in positions of authority are susceptible to Corruption. Corruption certainly reflects greedy and selfish behavior.

Methods of Corruption

First of all, Bribery is the most common method of Corruption. Bribery involves the improper use of favours and gifts in exchange for personal gain. Furthermore, the types of favours are diverse. Above all, the favours include money, gifts, company shares, sexual favours, employment , entertainment, and political benefits. Also, personal gain can be – giving preferential treatment and overlooking crime.

Embezzlement refers to the act of withholding assets for the purpose of theft. Furthermore, it takes place by one or more individuals who were entrusted with these assets. Above all, embezzlement is a type of financial fraud.

The graft is a global form of Corruption. Most noteworthy, it refers to the illegal use of a politician’s authority for personal gain. Furthermore, a popular way for the graft is misdirecting public funds for the benefit of politicians .

Extortion is another major method of Corruption. It means to obtain property, money or services illegally. Above all, this obtainment takes place by coercing individuals or organizations. Hence, Extortion is quite similar to blackmail.

Favouritism and nepotism is quite an old form of Corruption still in usage. This refers to a person favouring one’s own relatives and friends to jobs. This is certainly a very unfair practice. This is because many deserving candidates fail to get jobs.

Abuse of discretion is another method of Corruption. Here, a person misuses one’s power and authority. An example can be a judge unjustly dismissing a criminal’s case.

Finally, influence peddling is the last method here. This refers to illegally using one’s influence with the government or other authorized individuals. Furthermore, it takes place in order to obtain preferential treatment or favour.

Get the huge list of more than 500 Essay Topics and Ideas

Ways of Stopping Corruption

One important way of preventing Corruption is to give a better salary in a government job. Many government employees receive pretty low salaries. Therefore, they resort to bribery to meet their expenses. So, government employees should receive higher salaries. Consequently, high salaries would reduce their motivation and resolve to engage in bribery.

Tough laws are very important for stopping Corruption. Above all, strict punishments need to be meted out to guilty individuals. Furthermore, there should be an efficient and quick implementation of strict laws.

Applying cameras in workplaces is an excellent way to prevent corruption. Above all, many individuals would refrain from indulging in Corruption due to fear of being caught. Furthermore, these individuals would have otherwise engaged in Corruption.

The government must make sure to keep inflation low. Due to the rise in prices, many people feel their incomes to be too low. Consequently, this increases Corruption among the masses. Businessmen raise prices to sell their stock of goods at higher prices. Furthermore, the politician supports them due to the benefits they receive.

To sum it up, Corruption is a great evil of society. This evil should be quickly eliminated from society. Corruption is the poison that has penetrated the minds of many individuals these days. Hopefully, with consistent political and social efforts, we can get rid of Corruption.

{ “@context”: “https://schema.org”, “@type”: “FAQPage”, “mainEntity”: [{ “@type”: “Question”, “name”: “What is Bribery?”, “acceptedAnswer”: { “@type”: “Answer”, “text”: “Bribery refers to improper use of favours and gifts in exchange for personal gain.”} }, { “@type”: “Question”, “name”: ” How high salaries help in stopping Corruption?”, “acceptedAnswer”: { “@type”: “Answer”, “text”:”High salaries help in meeting the expenses of individuals. Furthermore, high salaries reduce the motivation and resolve to engage in bribery.”} }] }

Customize your course in 30 seconds

Which class are you in.

• Travelling Essay
• Picnic Essay
• Our Country Essay
• My Parents Essay
• Essay on Favourite Personality
• Essay on Memorable Day of My Life
• Essay on Knowledge is Power
• Essay on Gurpurab
• Essay on My Favourite Season
• Essay on Types of Sports

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Download the App