How to Write a Financial Worksheet
Many lenders require a financial worksheet to approve a mortgage loan, business loan or personal line of credit, but gaining a loan is not the only reason you should create and maintain a personal financial worksheet. It gives you a comprehensive view of your family's financial stability and helps indicate any areas of concern. The best part is you don't have to be an accountant or have fancy software to prepare one.
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Things You'll Need
- Account statements
- Property tax appraisal
- Spreadsheet software
- Paper
- Pencil
Instructions
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Gather your financial documents such as credit card statements, loan statements or amortization schedules and real estate tax appraisals. If you do not receive paper copies of these documents, be prepared to access them online through your accounts.
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2
List your assets. Assets include the amount of money in bank accounts and retirement accounts and other tangible items such as your home, cars, computer equipment and furniture. Use Excel or other spreadsheet software or a sheet of paper to record the type of asset and value for everything you own. Estimate the value of furniture and other household items based on resale value. Car values can be estimated using an online source like Kelly Blue Book. Add the value of all your assets together for the total.
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3
List all your outstanding debt. Below the assets, list each debt and the entire balance remaining to be paid. Debts include items such as mortgages, car loans, installment loans and credit card balances due. Add the list of debts together to get your total.
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4
Subtract your total debt from your total assets. This amount is your net worth, or how much you would be worth completely liquidated.
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Make another list of all your monthly income sources and amounts. Start the list on a new spreadsheet or piece of paper. Income sources may include net income from your job, self-employment income, child support or dividends from retirement accounts. Add the income items to get the total amount of cash you receive monthly.
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List your monthly household expenses. Household expenses include mortgage payments, credit card payments, utilities, cell phone, child care, gas, groceries and other expenses for maintaining the household and household members. Add the expenses to get your total monthly cash outflow.
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Subtract your total monthly expenses from your total monthly income to get your available cash remaining after living expenses. Available cash can be used for emergencies, to pay down other debt, vacations or other purchases. If your net cash flow is negative, assess your financial statement and determine where you can cut costs or increase income.
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Tips & Warnings
Reduce debt as much as possible with available cash flow.
