Personal finance expert Subramaniam lists six essential financial statements that we all can easily and must make. These are:

1. Goals statement: tells you your written financial goals, the path, and the time that it will take to achieve the end result.

2. Income statement: Tells you what you earn – and from where- your business income, dividend income, interest income….etc. Looks easy on paper especially for a person with a salary income, it can be complicated for a business man.

3. Balance sheet: shows the asset and liabilities of a person as on a particular day.

4. Expenses Budget statement: This tells you what expenses you are likely to incur in the next period – say a month, a quarter or a year. It is the estimate that you will incur – the more detailed it is, it is difficult to make.

5. Assets statement: A statement of your assets – mutual funds, shares, life insurance policies….etc.

6. Liabilities statement: a statement of all your loans – auto, home, … and everything else.

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