Every journey starts somewhere. Personal financial statements tell you the starting point of your financial journey. Start with a balance sheet and a breakdown of your net worth. On separate lines, list your assets. Liquid assets are those assets that are readily convertible to cash with no substantial reduction in value, such as money market funds.
Invested assets are assets set aside for long-term financial needs.
These assets include stocks, bonds, and mutual funds held in brokerage accounts, retirement savings, collectibles and business property. Your principal residence, personal property and autos would be categorized as a personal use asset. At least half your assets should be appreciating in value. Once you ve determined your assets, add up your liabilities. Like assets, liabilities can be subcategorized as either current liabilities or long-term liabilities.