Financial Success Guide

How To Create Your Personal Balance Sheet

Section 7 Module 2

Following on from the previous chapter, your personal balance sheet consists mainly of two parts:

  1. Your Cash Flow, and
  2. Your Net Worth

Cash Flow

Cash flow is calculated by subtracting your ‘Expenses or Outgoings’, from your ‘Income’.

Ideally, if you want to get ahead in life, your cash flow should be a positive number

If its negative, you may have a debt problem, and you may need to ‘reduce your expenses’, or ‘increase your income’.

Net Worth

Net Worth is calculated by subtracting your ‘Liabilities or Money you owe’, from your ‘Assets or Value of things you own’.

Ideally, your net worth should be a positive number.

If its negative, you may have bad debt, and you may also need to start investing asap.

Excel Template

I have created a Microsoft Excel Template to help you create your own ‘Personal Balance Sheet’.

The image shows you how the Excel file looks. You can download it by clicking the image below.

Balance Sheet