Personal Financial Statement - Know Your Financial Position that is a document or set of documents that outline an individual's financial position at a given point in time.

Therefore, in this guide, we will teach you to create a powerful financial plan to help you achieve your greatest dreams – believe it is possible!

Without financial planning, many entrepreneurs start a business without knowing their target audience, suppliers, competition, fixed and variable costs and end up closing their doors before the business completes two years. When we look at personal financial statement, the care of money and its management is necessary.



Personal financial statement and financial plan is nothing more than defining a strategy for making decisions based on the use of control tools, employing an intelligence capable of facilitating the achievement of objectives taking into account concept the personal assets profile and characteristics of each person.

It serves to organize actions to achieve financial goals

Month after month, many people look at their bank and creditor statement and are surprised that they spend more than they thought they did. To avoid this problem, a simple method of accounting for income and expenses is to have financial statement. Like those used by companies, financial statement provide an indication of your financial condition and can help with budget financial plan. There are two types of personal financial statements:


A personal assets cash flow income statement measures your cash inflows and outflows through cash flow statement to show your net cash flow for a specific period of time. Cash entries generally include the following:

  • Salary
  • Savings account interest
  • Investment dividends
  • Capital gains on the sale of financial securities, such as stocks and bonds.
A personal financial statement is a snapshot of your personal financial position at a specific point in time. To achieve sucesss it is very imp step.

The cash flow statement represents all expenses, regardless of size. Cash outflows include the following types of costs:

  • Rent or mortgage payments
  • Utility recipes
  • Groceries
  • Gas
  • Entertainment (books, cinema tickets, restaurants, etc.)

Now to find your net cash flow by determining your cash inflows and outflows. It is the financial goals of subtracting your outflow from your inflow. A positive net worth cash flow means that you have earned more than you spent.


The second type of personal finance statement is a personal balance sheet that provides a general snapshot of your wealth management at a specific time period. It is a summary of your total assets (what you own personal financial statement), your responsibilities (what you owe) and your net worth (asset less total liability).


The part of the capital of a company that can be acquired and generate income statement balance sheet through its dividends or through its sale.


Financial asset are fixed income when the money invested yields a fixed rate of return to avhieve financial goals. In this case, the remuneration rules are defined at the time of application.

This investment can be made in fixed or post fixed types. In the first, the yield rate is known at the time of application, while in the second, only the variable rate that will be part of the investment is known.


  • CDB – Bank Deposit Certificate;
  • LCI and LCA – Letters of Credit for Real Estate and Agribusiness;
  • LC – Bill of Exchange;
  • Direct Treasury;
  • Debentures;
  • Fixed income funds.


Financial asset are of variable income when it is not possible to predict with certainty whether there will be an income and expenses or how much it may be, different from fixed income.

When purchasing shares in a company, for example, it is possible for the price to fall or rise on the stock market while they are in the buyer’s possession. In addition, it is not possible to predict whether the company will make a profit and distribute in dividends.

In addition to stocks, other examples of equity investments are equity funds, multimarket funds, real estate funds and derivatives. Learn also about financial engineering.


personal financial statement for business owners and  personal financial statement is a form or spreadsheet detailing a person's financial state

 Liabilities are merely what you owe (your financial position). total Liability include current accounts, payments still due on some assets, such as cars and houses, credit card balances and other loan.


Your net worth value is the difference between what you own and what you owe. The measurement of wealth represents what you own it is your financial position and after everything you owe, has been paid. If you have a negative net worth, it means that you owe more than you do. The increasing your asset or decrease your total liability are the ways to increase your total net worth. You can increase assets by increasing your financial position or money or increasing the value of any asset you own. A note of caution: make sure you do not increase your liabilities along with your asset. For example, your asset will increase if you buy a house, and your liabilities will also increase, if you take out a mortgage on house. Increasing your total net worth through an increase in total assets will only work if the increase in asset is greater than the increase in liabilities. The same is true of trying to decrease liabilities. A decrease in what you owe should be greater than a decrease in asset.

Personal financial statement template are also available and it provide the tools to monitor your spending and increase your total net worth. The personal financial statements are not just two separate pieces of information, but they work together where your net cash flow from the cash flow statement can really help you in your quest to increase equity. If you have a positive net cash flow over a period, you can apply that money to acquire personal assets or pay liabilities. Applying your net personal finance total assets cash flow towards your equity is a great way to increase asset without increasing liabilities or decreasing liabilities without increasing asset. If you currently have negative net worth cash flow or if you want to increase your positive net cash flow, the only way to do so is to assess your spending habits and adjust them as needed and by decreasing your negative net worth. By using personal balance sheet or financial statement to become more aware of your spending habits and equity, you will be well on your way to greater financial security.