Personal Balance Sheet

Your personal balance sheet should list everything you have and everything you owe, but the concept here goes far beyond just your financial assets and liabilities. We’ll use this format to flesh out everything you need to think about for your personal finances and your life.

But first, some definitions. Assets and liabilities can be defined many different ways, but to be as inclusive as possible in building a personal balance sheet, I’d like to define them very broadly:

  • An Asset is something that will produce future value for you
  • A Liability is something that will produce a future cost for you

These broad definitions can complicate the way you think about things – traditional assets, like cars, become a little more complex. But they do allow the most thoughtful and comprehensive approach to building your personal balance sheet:

ASSETS

Real Property

Banking and Investments

  • Cash
  • Tax-deferred accounts
  • 401K
  • IRA’s
  • Taxable / regular accounts

Life insurance

Car

Other Personal Property

  • Clothes
  • Furniture
  • Jewelry

Skills and Powers

Education

Job

Your clan

  • Spouse / significant other
  • Children
  • Parents
  • Pets
  • Extended family

Saving Habits

Activities / Hobbies

What Other People Think of You

  • Credit Rating
  • Reputation
  • Network
  • Legacy

Health

Life

Time

LIABILITIES

Real Property

Debt

  • Mortgage
  • Car loan
  • Student loans
  • Credit card debt
  • Other debt

Life insurance

Car

 

 

 

 

 

Job

Your clan

  • Spouse / significant other
  • Children
  • Parents
  • Pets
  • Extended family

Spending Habits

Activities / Hobbies

Scoreboarding

 

 

Bad health

Dying