Personal Financial Statements and Analysis

							                       Personal Financial Statements and Analysis


                                   Due February 25


Before beginning any personal financial plan, you need to know your financial
position in order to answer the “Where am I now?” question. The text shows how
balance sheets and income statements are constructed (pages 30 to 41).


A balance sheet as of December 31, 2004 together with an income statement are due
as shown above. A balance sheet is a snapshot of assets (what you own), liabilities
(what you owe) and net worth (your wealth) as of a specific date. An income
statement covers income and expenditures over a period of time.


Because spending patterns vary monthly, it is recommended that your income
statement cover three or four months, say from October 1 through December 31,
2004. You may wish to use sheets from the text’s Workbook (or Figures 2.3 and 2.6
in the text). Adjust the categories to fit your situation.


Also required and due at the same time is a self-assessment of your situation. This
might include a discussion of any concerns about the level of savings and debt,
surprises about your spending patterns, your ability to maintain financial discipline,
your attitude risk taking or anything else that could affect your financial future. It is
preferred (but not imperative) that these be submitted electronically.




Financial Statements