what's going on fellow youtubers and subscribers welcome back to money in
life TV alright guys in today's video chipper
and I have a free personal financial statement template for you like I said
it's completely free! I'll show you where you can go to download it at the end of
this video I want to make this video keep it as short as possible so let's go
ahead and get started when it's all said and done it's gonna look something like
this as you can see we're entirely using Excel for this personal financial
statement let me go to the print preview it's kind of hard to zoom in but it's
gonna look something like this so you're gonna have comparative Excel personal
financial statements now just so you guys know before we really dive into
this you know if you're new to finances investing in taxes and that sort of
thing personal financial statements are a real thing as a CPA I've been doing
accounting for now for over seven years and I've prepared several real-life
personal financial statements and the format looks similar to this okay so
I've pulled a similar format I've customized it and made it my own from an
original template that I found online in real life personal financial statements
can be used to help you get a loan for a business it might be used in some cases
when you're applying to get a mortgage things like that so help you get
financing you know credit and all that kind of stuff it's good to have
something to show the banker that your finances are in order and a personal
financial statement is a fantastic way to do that but beyond the act of just
getting a loan it provides so much more value in my opinion just for the sake of
tracking your own net worth and actually realizing what you have it is so
valuable to do this process if I were to start over from the beginning
what I recommend the people is when they're first starting off with their
finances they should start off by creating a personal financial statement
and a budget these two things are the things they're gonna help them get
started this is a good example I'm just using chipper chipper it has volunteered
to help us out he's shown us his own personal financial statements over to
the side of this template I've prepared a few notes for you guys to help you
figure this stuff out and so your step one is to prepare a list of all the
assets and liabilities at their current fair market value or their current and
debt balance at the date of the financials and you guys can do
financials for any date you want I'm just doing as
as an example 12 31 18 this is all hypothetical but you could make these
financials for June 30th of 2018 if you wanted to whatever month you want okay
that's it's completely up to you but I like to do this process for myself and
my family at least once a year personally so the first step is to
obviously write a list of assets and your liabilities at that date and write
out their values you can use the asset tab which we're about to go over to
lists that all of your assets you can use the liabilities tab to prepare a
list of liabilities and step 2 you can add or remove lines as needed on this
page to customize the financials to your particular situation so if you if
there's a description on here whether it's under the assets or liabilities and
it's not what you need you can either right-click on this and delete or you
can do right click and insert line if you want and then type in a new
description for whatever asset you own or liability on you can also hide guys
if you just want one year's worth of activity you don't want to see all this
comparative information you can just hold shift and left-click and then you
can hide all of this if you want so that you're just showing one year's worth of
financial data but it's totally up to you it's totally customizable Dume you
make it if you don't like this format guys makes it the way you want it like I
don't care you're not gonna offend me if you change the format the point of this
whole video is to give you something that to work from and customize it to
your own ability to your own liking so that you can find it useful in your own
life that's the whole point of this video so I want to make that clear
things remember guys is that your net worth is your total assets minus your
total liabilities once again your net worth is your total assets minus your
total liabilities in case nobody's ever told you that many people don't know how
to calculate that it's pretty simple so your total assets minus your total
liabilities is what your net worth is now for many people because there's many
people aren't debt so it you might find that you actually have a negative net
worth and that's okay we all start somewhere but it's good to know that you
actually have a negative net worth and you can work from there so if this
number is negative then it's no big deal it's just like you know that's where
you're at and but hopefully I'll have a positive net worth and you can grow your
net worth from here knowing what your net worth is if you've never done this
process before and I just want to say I recommend
linking the 2018 information in Excel to each of your assets and liability tabs
we're gonna look at that in a second so that whenever you update these
account balances your financials will update automatically so you do not have
to hand key in numbers every time I'm gonna show you guys that note for
comparative column to work properly and oops that's a typo that says property so
for the comparative column over here what I recommend you do is you hard key
in these numbers so they do not change so that as you go from year to year
you're gonna keep that financial information consistent year after year
after year the only column I recommend you link is this one is your current
year column for whatever year and whether it's 2018 fields 19 make sure
this is linked but this one is hard keyed so just remember that last but not
least guys after each year is complete I suggest saving this file as financial
statements 2018 and then for 2019 save a new excel file called financial
statements 2019 so each year you do this you'll have your hard keyed numbers here
in this column your current year numbers here and then if we want to flip this to
2019 and we're gonna go to file save as Excel workbook and create a whole new
file and call it financial statements 2019 that way you're gonna have all of
your previous data saved it won't be touched you won't accidentally delete
things or add things and that way you can keep a clean history of your
financials and your net worth over time that's what I recommend and that is what
I personally do and it's worked fantastic I've been doing this for about
four years and every year I can watch my net worth grow and whenever I want to
look back in the past and see where my net worth is that I can just click on
one of my older financial statement worksheets
I realize guys know those over this kind of fast but you know that's intentional
so just be sure to ask questions feel free to ask any questions you want about
this I'd be happy to help just make sure you leave them in that comment section
down below and I will get back to you guys okay so those were the notes now
let's just look at a couple examples and we'll wrap up this video now this is
what its gonna come out like in the end okay so like like I said remember for
2017 the previous year well I had the hard key these numbers in for chipper
for chippers financials and but for 2018 let me show you where things are linked
so if I click on cash as you guys can see it has a
linked up here to the assets tab that's what that means when it says equals
assets so what I down in the assets tab this is where you can enter all your
asset information let me zoom in for you guys so you guys can see that's in the
asset tab now this is where you can enter all of your asset detail so I've
broken it out by cash I have you know then I have it by type of cash account
checking account saving accounts money market accounts certificate of deposits
if you had any then and you guys can like I said customize this however you
once if you don't like this well then just make it the way you want it's not a
big deal then notes and contracts held then you know this is for accounts
receivable notes if somebody owes you money brokerage accounts so if you had
let's say you had an account with TD Ameritrade or you have your Robin Hood
you would enter your total market value of your Robin Hood accounts right here
retirement accounts if you have retirement assets so your Roth IRAs we
have two of them in this case shipper has two as well 401ks maybe you and your
spouse both have 401ks so however many accounts you have there and then other
assets maybe you have gold maybe you have crypto currency like Bitcoin or
that kind of stuff you can enter it right there personal effects so this is
like your car's you estimate the value of your car you can look on Kelly Blue
Book that's what I typically do for the current market price of your car if you
were to sell it furniture electronics you can just estimate jewelry so all
these things are things that go into the impact your personal and financial
statements these are all the things that I see as a CPA in the real world that
people own and have so that's kind of why I've listed it out this way and of
course Real Estate's you know the value of your home you can use you know Zillow
is on a totally accurate estimate but you know you can use the Z estimate as
just a rough number but you know your house could be worth more or less than a
Zillow estimate obviously so so things like that and then at the bottom of this
you'll have the total of all of your assets so we'll be you know we'll add up
it will add up all these columns all these totals for each type of asset you
have so that it arrives at your total asset number now if we go back so here
their total asset number if we go back to the main page you'll see that that
matches the total asset numbers this number right here should match the
total asset number you have right here if not it means something is missing
from this from you maybe you're missing a line or maybe you're missing a link
here or maybe your formulas here are not adding up right so you just look for
those kind of errors it within a spreadsheet real quickly so you guys can
see how I linked this if you want to link it this is the cash account okay so
I have my total cash balance here of all my cash accounts for chipper and then
chippers checking account savings accounts things like that this is the
total amount of cash so if I go to the comparative worksheet or over here
you'll see that these cash lines right here if I add those all up it equals
seventy one thousand two fifty which matches this seventy one thousand two
fifty and the way to link that is you you just come here and you would hit the
equal button if if you're new to excel hit the equal button and then go to the
assets tab and we want to link that 1250 because that's the checking account
we're gonna click left click on that and hit enter and now that number is linked
to that so that whenever you update this whenever update so let's say like I have
all of a sudden I have a like a twenty thousand dollar certificate of deposit
right away my total cash updates here and then on my comparative column this
came in the plain out so now all of a sudden there's 20 thousand dollars here
showing the certificate of deposit links are great because it will automatically
do you do it for you once you have them set up and it becomes very easy to
update going forward and this is all done for you guys you just have to do a
little tweaking to make it your own and then you're good to go and so that's
basically how they access column works alone let me remove remove the
certificates of deposit and that will get that back in line
now just real quickly let's look at liabilities because you guys can really
study this in your own time and see what's available so you have your for
your liabilities credit cards so you might have multiple credit cards chipper
only has one and so he's got a credit card balance of five hundred bucks so if
we come to the comparative worksheets if we go down right here we can see that
chippers current debt crit on credit card accounts is five hundred dollars
it's linked it's totally linked just like the access tab
so here's the total credit card debt if you have bank loans personal loans with
a bank you'd list them here if you have a mortgage on chip Rose 98 thousand
dollars on his mortgage if you have student loans so chipper has some
student loans in this case luckily mine are all paid off at this point my life
thank God but this is where all those in from all that information would be
remember guys on both the assets and liabilities tab you can customize that
you can add lines whatever you want to do to make it fit your unique personal
situation because everybody's life is completely unique but then that's why I
like you excel is because you can customize Excel with some basic
knowledge however you want at the bottom of this screen guys is the total debt of
all debt will add up all these columns just like it did on the assets screen it
will add up all those amounts here and so if you go to comparative right here
there's your total liabilities so your total liabilities here should match your
total liabilities of all your debt right here so that's kind of a way to check
yourself to check your math to make sure all the formulas are correct
everything's included you're not missing anything within your links and your
formulas and all things like that the last part of this worksheet I've
included as a comparative column and it will show both the change in dollar
value from year to year for each asset also the percentage change are increased
from asset asset now if there is nothing for it to compare it to then it's gonna
show zero or there's gonna be nothing there so you're gonna have to add a
formula is if I add a formula right now with no information it's gonna show that
ugly thing of div oh it's like a formula error and so that's why you know I don't
have anything there but if you want to drag this down once you have in for if
you have information these columns just click this little guy here and drag it
down and then it will update automatically for you once you have your
numbers here so this will show you the dollar change so from 2017 chippers
checking account had a thousand dollars in 2018 and has one thousand two hundred
fifty dollars doesn't $250 change so all the way down it shows the change in
chippers assets and it also shows the change in chippers liabilities so for
credit cards for examples in the liability section the 2017 chipper was
spending a lot of money on all those hot videogames and so he had
rung up $2,500 in credit card debt but now in 2018 we can see he's paid that
down to $500 so that's why the change is negative here it's a decrease of $2,000
and an overall decrease in chippers credit card debt of 80% and at the
bottom here for you is the the net change of everything so the the bottom
line the last line of this spreadsheet is the net worth so as you can see
chippers net worth in 2017 was five hundred and forty three thousand five
hundred but in 2018 chipper has been making good money on his job he's been
saving he's been investing things like that the markets been going up so
chippers investments are increasing the value of his net worth his mortgage is
going down the value of his home is going up things like that and so his
overall dollar change in net worth is one hundred thousand dollars so chipper
had a one hundred thousand dollar increase in his net worth and which is
that overall an eighteen and a half percent net increase and I'm and so I
can tell you guys that over the past five years for my wife and I we've been
able to increase our net worth on average anywhere from fifteen to twenty
percent every single year and it's really motivating to do this every
single year if you go through this process add up all your liabilities all
of your assets and drop in these numbers and your prior column you know enter
your updated asset information towards the end of the year and you'll be
getting this stuff this information really is gonna come from your like your
cash accounts it's gonna come from your bank statements that's we're gonna find
that your brokerage account value you can look online or you can look at your
December 31st statement of 2018 if you were doing this for 2018 of December
that's where you would find the fair market value for your brokerage account
and so you were just really gathering the statements that would provide you
these balances so like I said for your mortgage value you can estimate you are
me not in your mortgage I'm sorry so for the value of your home you can estimate
what it is if Zillow says it's like three hundred and fifteen thousand if
you want to use that Z estimate even though like I said it's not totally
accurate you can do that you can use you know you can look at your retirement
statements from your retirement accounts to figure out what the value of your 401
K is so there's all these things you can do I think you guys get the point and so
that's why I want to wrap up the video here and like I said in the end you're
going to have a clean if I'd go to print preview
you're gonna have a clean financial statement that you can use every single
year you just save a new file and update it to the next year in the next year in
the next year and you'll have a clean history of how you grew your net worth
every single year for the rest of your life and you can really get your
finances in order this way I want you guys to also remember I do have a free
budget template I don't know if you guys know that if you're new to the channel
but I will link up that video down below in that spreadsheet as well as a link to
this spreadsheet this spreadsheet you can find in a Dropbox link down into
this description section down below this video and just go ahead and click it
that link and you can download it for yourself it's completely free I promise
there's no strings attached that's right I put all this time to making this and
I've made it completely free for you guys so you can do your financial
statements kind of like I do if you want or like I said make it our of the heck
you want I don't care whatever works for you guys that's that's what this is
really about okay guys well I'm gonna wrap up the video right here thank you
so much for your support on this channel if you have any questions at all about
how this works or just questions in general feel free to ask you know you
guys can ask me questions anytime you want just leave them down in that
comment section down below I'll make sure to get back to you if you like the
video be sure to drop a like before you leave share this information with a
friend especially somebody who's looking to improve their finances this is a
great template that you can share with your friends and family and so there can
everybody contract or net worth and maybe you can compete against one
another if you're both trying to improve your finances pay down debt or whatever
at the same time it'd be a fun competition and the last but not least
guys if you're new to the channel or welcome this channel is all about
helping you become fiscally fit as we teach finances investing and taxes on a
regular basis on this channel usually I'm able to post a new video every
single week thank you so much everybody for all the support you give me on this
channel I can't thank you enough and I will see you guys in the next video and
remember use this information that you learned you today to live your life on
gauged alright guys I'll see you next time take care everybody peace
don't you put words in my mouth don't try to shut me up
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