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Simplified Personal Financial Statement

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               Sometimes keeping things simple is the best way to continuously manage wealth. That is why GPetrium has built a ‘Simplified Personal Financial Statement’. This document outlines one’s individual financial position and it is divided into two major areas: Assets & Liabilities. A secondary benefit of having it is that some lender may request a Personal Financial Statement before allowing you to borrow money from them*.

*Please note that some lender will provide a formal PFS to be filled. Be sure to follow their directions.

sample view of the simplified personal financial statement document

Definitions

Assets

  • Cash – Checking: Money with a very high liquidity, including but not limited to cash and checking account.
  • Cash – Savings: Money available in a savings account, it usually has a slightly higher return in comparison to a savings account, but it is often less liquid, with some form of deposit and withdrawal restrictions.
  • Securities – Debt, equity, derivative securities: A variety of financial securities that range from stocks, bonds, GICs, mutual funds, index funds, futures, forwards, swaps, etc.
  • Life Insurance: Insurance policy amount on the life of the insured.
  • Personal Property: Personal belonging ranging from jewellery, furniture, collectibles, etc based on current expected market value.
  • Retirement Fund: Resources available for retirement outside the items listed in other segments.
  • Real Estate: Value of real estate owned by the individual.
  • Other Assets: Any other asset not previously listed in any other segment.

Liabilities

  • Short-term Debt: Financial liabilities such as short-term credit card debt, most payday loan instruments, accounts payable and others that are expected to be paid within a short period of time.
  • Mortgage / Rent: Mortgage or rent commitment that the individual incurs.
  • Transportation Loans & Leases: Loans or leases associated with one’s mode of transportation. It can mean a car, motorbike, bike, boat, snowmobile and more.
  • Long-term Credit Card: Credit card debt that has surpassed its short-term expectancy. This segment can be changed to refer to another type of debt that has gone beyond its expectation.
  • Student Loan: Borrowed money used to help support the payment of education certificates, courses, degree, books, and sometimes living expenses.
  • Health Care Loan: Borrowed money used to support one’s health care needs which can range from prenatal care to end-of-life care.
  • Unpaid Taxes: Tax commitments that have yet to be paid to the respective government entity.
  • Other Liabilities: Any other liability that has not been listed in previous segments.

               The ‘Simplified Personal Financial Statement’ is intended to be simple to use and maintain. Individuals may make changes to their Personal Financial Statement items to better satisfy their personal need.

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