The Personal Financial statement normally includes a summary of the total assets and liabilities as well as general information about the person, like name and address. The statement can be used by people to apply for credit and to keep track of their wealth and financial objectives. An individual’s or couple’s assets and debts are listed in a personal financial statement.
A person’s net worth is calculated by reducing liabilities from assets; a positive net worth indicates that there are more assets than liabilities.
As the values of cash flows change over time, net worth may also alter.
Personal financial statements are useful when asking for credit and keeping track of finances and goals.Income and costs are typically listed on a separate sheet called the income statement, though they could also be included in a personal financial statement.