By keeping tabs on your finances, you can create a secure and fulfilling future. That’s where a personal financial statement comes in.

At its core, a personal financial statement offers an overview of where you stand financially at any point in time. It can help you succeed in various aspects of your life.

Why You Need a Personal Financial Statement

There are several reasons you may want to create a personal financial statement. It can help you if you’d like to:

– Take out a loan. – Apply for financial aid. – Make a guarantee. – Design a retirement, estate, college savings, or other financial plans. – Lease a commercial office or other types of business space  – And more....

A personal financial statement can be instrumental in the way you think about your money and manage it.

Here’s why: When you see your net worth, you’ll realize that many of your previous and future behaviors affect that figure. It informs you of whether or not you’re on track to meet your financial goals A high, positive net worth, for example, may mean that you’re closer to your dream of:

– Buying a dream home or rental property. – Retiring early. – Working part-time instead of full-time so you can spend more time with your family. – Donating more money to a cause or organization you value. – Funding your children’s college.

Low or negative net worth can give you a wake-up call. It may be just what you need to change your behaviors and be more cautious with the what you  do with your money.  You may be more likely to get out of debt, pick up a side job, and stick to a budget if you’re displeased with this figure.