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personal income statement template

This income statement template was designed for the small-business owner and contains two example income statements, each on a separate worksheet tab (see the screenshots).The first is a simple single-step income statement with all revenues and expenses lumped together.. The second worksheet, shown on the right, is a multi-step income statement that calculates Gross Profit and Operating Income. The smartest thing to do is to either fill out a free personal financial statement template or to download a sample personal financial statement and build your own. Either of these is cheaper and quicker than hiring a professional. Legal Considerations of a Personal Financial Statement. An income statement template is a unique document for every business and use as a key element to know about the financial position of a company or business. It is an accounting tool which describes about the revenues and expenses through both operating and non operating activities.

FREE Personal Income Statement |

That's right! Simply tracking your income and expenses each month can quickly help you save more money, personal income statement template. What if I told you that not only will it save you money by reducing monthly expenses, but being disciplined about your income and expenses can actually make you more money?

When I went off to college, I kept made tiny deposits into my savings account, balanced my checkbook, avoided bouncing checks, and didn't carry credit card balances. After graduating from college, I got a real job. And at first, it was all good. I suddenly had money to spend! But along with that real job, I got real bills.

In what seemed like an instant, I went from feeling rich to wondering what happened to my money every month. It was there Honestly, it made me angry that I didn't have control over my money. I was working hard, and had little to show for it. And I knew that if I couldn't handle the money I did have, I would never be able to handle the large amount of money I wanted.

I learned that in order to manage my money, I needed to understand how it flowed through my hands. The personal income statement showed me how much money I had coming in, and how much money was going out. Once I saw all my expenses and recovered from the initial personal income statement templateI began working on lowering them as much as possible.

If you stick with it, personal income statement template, you'll end up saving yourself a lot of money, which is one of the goals of having a personal income statement. Safe Investing Tip: Need an example of a personal income statement? This is why we call it an "Income Statement", personal income statement template. A word about "revenue". According to Robert Kiyosaki, assets generate revenue. For example, When you have a job, you are an asset to a company because you do things that make the company money And you got a job because of your knowledge and skills.

Those are your personal assets, because your knowledge and skill determines your value to the company, and what they are willing to pay you for your services. But let's be honest In fact, most people use the word "income" to describe "revenue" and use "profit" to describe "income". This is actually one of the reasons investing is so hard; people use different terms to describe the same thing, personal income statement template.

To keep things simple, personal income statement template, I'll talk about the income and expenses from here on out, personal income statement template. Remember, it's called personal finance for a reason, and the personal income statement is no exception. The personal income statement template is to help YOU get comfortable with your finances, so change the groups and categories as needed for your needs and understanding.

I provide a free template as an example PDF rather than something editable, to force you to go through the exercise of creating a system that you are comfortable using!

After creating my first statement, I saw that I had one source of income my joband almost 40 different expenses. Think about it. If your company only had one customer, and that customer left, you'd go bankrupt. Why should the business of you be any different? Personal income is classified into 3 different forms: EarnedPaper or Portfolioand Passive. You should try to develop a mix of all of them.

I group income just like the IRS does in the tax code. Using their rules helps save time when you get things ready for tax season. The IRS takes a portion of all your personal income via taxes, but the amount they take is different depending on the group. So knowing which type of income you have is important in order to pay the right amount of taxes and avoid an audits.

If you were, you would be paid for just for showing up at your job. Instead, time is just a convenient and standard way to capture the amount of labor you perform. But time does not capture the value of your labor, personal income statement template.

Value is reason that two people can both work 40 hours and get paid different salaries. Getting paid for value, rather than time, is an important distinction. This means that you can only create income when you are creating value Advantages of Earned Income: Payments are predictable and consistent Employers "pay" for your mistakes When you make a mistake at work, your paycheck usually isn't decreased, personal income statement template. The next time you receive a paycheck, look at how much of your hard earned money is removed before you get anything So portfolio paper income is created by your trading and investing process.

Passive Income Passive income is the best type of income, but also requires the most time to create. With earned income, you start getting paid almost immediately. With paper income, you get "paid" when you sell something, which could be short or long term. When it comes to passive income, you may not make any money for quite some time years! It is definitely not a "get rich quick" idea. Some people say dividends and interest payments are also passive income because these two types of paper income require almost no effort to maintain.

But since the IRS classifies both as portfolio income, that's where I put them so that calculating my tax returns was easier. Advantages of Passive Income: Residual Value After creation, passive income can be produced with little or no effort. Disadvantages of Passive Income: Personal income statement template a large amount of time and effort, personal income statement template, without any guarantee on the size of the income stream.

For example, buying an asset can create expenses. When you buy a stock, money leaves your trading account and in return, you get an asset. Recurring expenses those that you pay on a monthly basis are usually created by liabilities, personal income statement template as a mortgage or a student loan. Assets and liabilities show up in a different personal financial statementcalled a balance sheet. You can learn more about assets and liabilities on my personal balance sheet page, personal income statement template.

Your first personal income statement will probably seem more like a personal expense statement! But this is normal. Once you identify and remove the problem areas i. This separation makes seeing the problem areas easier.

I use categories that make sense to me, because I'm the one making the decisions. You should definitely do the same when creating your version of the personal income statement. Personal Payout Expense As mentioned on my personal financial goals page click hereyou should pay yourself before doing anything else with your paycheck. Technically, your company removes taxes before you get your paycheck, so how can you pay yourself personal income statement template Good question.

This is an important, symbolic action on your part. And it also makes personal budgeting a little easier! Pre-Tax Expenses Pre-tax expenses are payments that you make before taxes are removed. These expenses are usually removed automatically from your paycheck before you get your hands on it, and include items such as health insurance deductions and your retirement plan contributions k.

You probably noticed that all of these expenses are related to earned income. I structured it this way because employee's don't have a choice whether they pay taxes. Usually, after-tax expenses are the most out of control area of a personal income statement. The irony is that this category is the one that you have the most control over.

After-tax expenses get away from everyone, simply because there are so many different ways to spend our money. Discipline is a MUST when it comes to tracking after-tax expenses accurately. Many of you have heard of personal income statement template escrow account, especially those of you interested in home ownership. Basically, this type of account is created by your mortgage company to make sure you pay your bills. Each month, you write a check to the mortgage company, personal income statement template, and they deposit a portion of that check into a savings account with your name on it.

Unfortunately, you don't have access to this money; the bank does. The bank earns interest on your money, in return for automatically paying expenses like your homeowners insurance and property taxes. Safe Investing Tip: If you can, create your own "escrow" account by opening a savings account for yourself and put your "escrow" expenses in it every month. You'll be the one earning interest, not the bank! I created my own "escrow" account, so that I was the one earning interest. I like the idea so much that I expanded my account to include all my annual and semi-annual bills To set up your own "escrow" account, figure out which expenses you MUST pay each year such as taxes and insurance.

Here is an example list of expenses that could qualify:. Then, go to a bank and set-up a new account an online account works well in this case. Create an automatic, recurring monthly deposit for personal income statement template expense, every month. Now you're making paper income interest personal income statement template, just for having the discipline to plan ahead!

Without these three things, none of us would live very long. This is pretty much an open ended category.


Personal Financial Statement for Excel


personal income statement template


This income statement template was designed for the small-business owner and contains two example income statements, each on a separate worksheet tab (see the screenshots).The first is a simple single-step income statement with all revenues and expenses lumped together.. The second worksheet, shown on the right, is a multi-step income statement that calculates Gross Profit and Operating Income. Personal Income Statement. The personal income statements often used by people if the individual applying for the mortgage, credit or loans. When you download this word format then it comprises balance sheet and income statement template. Furthermore, this allows the officers to gain the perspective offers into financial situations. Creating and maintaining your own Personal Financial Statement is useful for 4 main purposes: (1) Gaining a good financial education, (2) Creating and evaluating your budget, (3) Applying for business loans, and (4) Applying for personal loans.. If you already know why you need one, and why you want to use Excel to create one, then go ahead and download the template below.