Personal Finance #2–Financial Statements & Budgeting

Understanding your personal finances starts with mastering personal financial statements. This course provides a practical guide to building and interpreting these crucial tools for effective financial planning.

You'll learn how to construct key financial statements, specifically the balance sheet and income statement, and understand their relationship. We'll use numerous example problems, presented through engaging presentations and hands-on Excel worksheet exercises.

Each Excel worksheet includes a downloadable Excel workbook with at least two tabs: one containing the answers and another with a preformatted worksheet designed for step-by-step completion, complemented by instructional videos. This approach ensures you gain practical skills you can immediately apply.

Personal financial statements are essential for measuring your current financial position and analyzing past financial performance. While similar to business financial statements, they are tailored to individual needs and goals. Unlike businesses focused primarily on revenue generation, personal finance often uses revenue as a means to achieve broader goals like retirement planning, debt management, or investments.

This course will equip you with the knowledge to:

• Construct personal financial statements accurately.
• Understand the difference between the balance sheet and income statement.
• Analyze how the balance sheet and income statement reflect your financial journey.
• Use personal financial statements as a foundation for creating a realistic budget.
• Calculate and interpret common personal financial ratios to assess your financial health.

By the end of this course, you'll be well-prepared to take control of your finances and build a secure financial future.