Finance

For managing my personal finances, I would like to maintain the following financial statements to enable me to take informed key financial decisions -

1. Financial statement that should be able to summarize all my income and expenses and my net savings for the entire year (or for part of year, if required).  The financial statement should also be able to provide me a list of all my sources of funds (i.e. whether my funds comes from my own income  Capital or whether it comes from borrowing from others -Outside liabilities) and data about my usage of funds (ie whether  long term assets are created or the funds are used for current consumption. Accordingly, I will create the following sample financial statement for this

Sample format
My income  expenditure account for the year ended.. (or month ended)
IncomeAmountExpensesAmountSalary Income
Rent received
Profits on Investments
Income from parents
Other incomes

Tuition fees
Books
Food  Lodging expenses
Entertainment
Miscellaneous expenses
Net savings for the year (balancing figure)


YYYTotalXXXXXTotalXXXX
Statement showing my sources and usage of funds -
Sources of fundsAmountUsage of fundsAmount
My previous savings
Add
Net savings for the year
Add
Borrowing from friends

Assets Owned
Bike
Guitar
Investments in shares
Cash in Hand
Bank Balance
Loan to friend

TotalYYYYYTotalYYYYYKey decisions possible through these 2 financial statements -
This financial statement will help me take several key decisions - like the amount that I would be spending out of my total income sources and the assets that I can purchase with my given set of savings and borrowings and the amount that I can either invest in various savings instruments like term deposits, shares and other investments or the amount that I can lend to my friends out of my given resources.

2. A financial statement to show me all the forecasted cash flows during each month of the year to assess whether there is sufficient cash inflow to meet all my forecasted expenditure over the year.

Sample format of Month wise and summarized  forecasted cash flow statement
JanFebMarAprMayJunJulAugSepOctNovDecSummaryBeginning Cash BalancexXxxxxxxxxxx0Cash Inflows (Income)XxxxxxxxxxxxSalaryxXxxxxxxxxxxxLoan from friendsxXxxxxxxxxxxxGift from parentsxXxxxxxxxxxxx   Total Cash InflowsxXxxxxxxxxxxxAvailable Cash BalancexXxxxxxxxxxxxCash Outflows (Expenses)xXxxxxxxxxxxxPurchase of SharesxXxxxxxxxxxxxLoan to friendxXxxxx xxxxxxxPurchase of GuitarxXxxxxxxxxxxxAll other expensesxXxxxxxxxxxxx   Total Cash OutflowsxXxxxxxxxxxxxEnding Cash BalancexXxxxxxxxxxxx

Key decision - This financial statement will enable me to plan all my cash requirements for the year in advance helping me ensure that I do not run out of cash for those important expenses at the right time. And if I find some months cash position to be short of my requirements, I can plan to either ask my parents to send in some money or my friends to lend me or arrange from somewhere else to meet my requirements.

3. A financial statement that captures all the details of my savings and the present market value of all my investments during the year in the form of an investment portfolio.

Investment typeFolio number of my investmentDate of PurchasePurchase priceNumber of units purchasedDate of SaleNumber of Units soldSales priceRemaining number of unitsProfit generatedSharesTerm depositMutual fundsInsurance Plan

This financial statement will help me keep a track of all my investments and to decide which investments to retain and which units to sell to generate maximum profits.