A (3:44)

So, Scott, you said this is a simple spreadsheet. And I want to say it's simple, but it's comprehensive. It's not difficult to fill this out, but it is going to take time and it will require you to find all of your financial numbers in order to get a whole snapshot. So I don't want people to think, oh, I'm just going to put in a couple of things and it's going to be done. It's a good document, is a great document. And how much does it cost?

B (4:09)

Again, Scott, $0 is that's free for, for everyone, regardless whether you, you are a listener of BiggerPockets money or, or if you were signed up for the Bigger Pockets Money newsletter list.

A (4:20)

All right, Scott, let's jump into the personal financial statement.

B (4:23)

Sure. So we're going to go to biggerpocketsmoney.com resources. We're going to go to the resource library and then we're going to go and download the personal financial statement. You can open it in drive or download it. We're going to download it here. Thank you to the 200 people who have already downloaded this before we've talked about it. So that's great. Thank you to those folks. So let's open it up now and we're going to be greeted with an instructions tab here. And this is just going to give you a quick overview about how to use a document. It's designed to be as simple as possible to get a reasonable picture of a typical bigger pockets money listener's financial position. I didn't build well. I hope anyone and everyone will find this resource if they need it or could use it. This is not like something for somebody who's worth tens or hundreds of millions of dollars, a huge business owner or anything like that. And it's a little bit more complicated perhaps than somebody who's broke and just getting started, maybe just has a few debts and no investment accounts will need. This is a little bit more complex than that. The idea is to modify all the inputs here. I've plugged in a position that I think is typical of an early retiree. So someone at the end of their financial journey here at BiggerPockets money just to give a sense for where all these inputs can go on each of the tabs here. So you fill these out and then I have a little kind of nifty feature where if you want to print it, it's all ready to go as long as you just exclude that first page. It's all formatted and stuff nicely to send to your financial planner. Okay, so let's talk about assets and liabilities. And this is the first reason why I was having trouble with a personal financial statement online. I feel like most personal financial statement templates do not discriminate between different types of net worth. Right. When we are looking to achieve financial independence, we want to treat our primary residence, our cars, our personal property and beneficiary accounts like a 529 or a donor advised fund differently than our stock, bond, portfolio or rental properties. Right. It's so basic and obvious and yet this does not exist in an easy format, a simple format that I can find online in a robust way. And so that's all this is doing. You just plug in your primary residence, your Mortgage your vehicles, your personal property and the debts associated with them. And that's how you get your personal property and other assets. Then we talk about your financial portfolio where you plug in your cash, your traditional or Roth or other retirement accounts, your after tax position and you get an idea of your net liquid financial portfolio. I separated the financial portfolio into two buckets here. The liquid financial portfolio, which you can think of as traditional stocks and bonds. Many people just live in that world in terms of investing their whole lives and that's great. And then many other biggerpockets, money listeners for example, will have other types of investments in their position. For example, like rental properties or businesses that they own, or private equity investments or credit or debt funds or those types of things that are less common but still included in various parts of the portfolio. And I also have this concept of other cash flow, right, like that that might include pensions or Social Security or these things that don't fit on a balance sheet but are there, you know, we're going to put a small nominal dollar amount to so that we can actually discuss them and have them and have them be a part of our portfolio. And there's a place to show where that cash flow is coming in on our net worth and liability statement. So this does not actually sum up to your illiquid financial portfolio here. It is just a showing what the cash flow projections are going to come from from your after your illiquid investment portfolio.

A (7:47)

And now a quick word from our show sponsors.

B (7:50)

When I evaluate debt funds, I look for things like first position loans, personal guarantees, deep experience by the fund operator, low fund leverage, fast liquidity and consistent returns. These are some of the reasons why I'm excited to partner with Pine Financial group. Their Fund 6 offers investors exposure to real estate credit, largely for construction and rehab, largely here in Colorado. With loans originated by an experienced originator. With over $1 billion in origination volume, 75% of their borrowers have been repeat customers over 17 years. They offer investors an 8% preferred return paid monthly and a 7030 LP GP split of everything over 10% paid annually. The lockup period is nine months with liquidity available within 90 days. After that nine month commitment, the fund is open to accredited investors only. The fund's minimum investment is typically $100,000, but Pine Financial is able to reduce that minimum for some investors and have agreed to do so for biggerpockets money listeners to to a minimum of $25,000. Full disclosure, I am personally invested in this fund through my self directed IRA and of course. Pine Financial is sponsoring this message and our podcast. If you'd like to invest or check out their Prospectus, go to biggerpocketsmoney.com pine today that's biggerpocketsmoney.com pine Please note that returns are not guaranteed and may vary based on fund performance. Support for Biggerpockets money comes from Northwest Registered Agent. Your business identity is everything that shows what your business is about from what customers see to what they don't see, like operating agreements, meeting minutes and compliance paperwork. Get more for your business, more privacy, more guidance and more free resources with Northwest Registered Agent. Northwest Registered Agent has been helping small business owners and entrepreneurs launch and grow businesses for nearly 30 years. They are the largest registered agent and LLC service in the United states with over 1500 corporate guides and they have real people who know your local laws and can help you and your business business every step of the way. Don't wait, protect your privacy, build your brand and get your complete business identity in just 10 clicks and 10 minutes. Visit northwestregisteredagent.com money free and start building something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Moneyfree.

A (10:03)

Support for the show comes from Public, the investing platform for those who take it seriously. On Public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year, you can literally type any prompt and put the AI to work. It screens thousands of stocks, builds you a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like ETFs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.combpm and earn an uncapped 1% bonus when you transfer your portfolio. That's public.combpm paid for by Public Investing Brokerage Services by Open to the Public Investing Incorporated member FINRA and SIPC Advisory Services by Public Advisors llc. SEC Registered Advisor. Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available at public.com disclosures. Welcome back to the show Scott. I want to point out that because you have very helpfully pre populated all of these numbers, if somebody is going to fill this in and an item doesn't fit in. Like let's say my instance, crypto. I don't have anything in crypto. Make sure you mark these as zero, otherwise it's going to change the numbers in a not positive way for you.

B (11:42)

Well, there's places to add all of that stuff, right? Right.

A (11:44)

No, I'm saying you have already populated all of this information. So if I say, oh, crypto doesn't apply to me and then I just skip it, instead of taking that 57,000 and turning it to a zero, I think it's really helpful to have all of these numbers pre populated. But then also make sure you take out anything that doesn't apply 100%.

B (12:00)

Yeah. And by the way, over time Mindy and I plan to invent fake people, for example, like Barb. Broke at 50, retired at 60. And we will pre populate versions of this and iterate on them so that they're more practically applicable to that type of person. And so that would be one that in the future you could download@biggerpocketmoney.com deep resources as we populate this to kind of give a view of a certain person's specific situation. And maybe those inputs will save you some time because they'll be closer to your situation than this. On the cusp of retirement Biggerpockets Money Listener that we created here, the other core component of a personal financial statement is your income and expenses. So this is going to include this. This has fields for, you know, if you imagine a married couple with two jobs, they have a base and a bonus component. Maybe there's a 1099 here or there where they make some, some sort of side income. Maybe there's, you know, a little bit of other income in some category, a rental property and some investment income. And the idea here was to get all the reasonable sources for investment income or income in a household that is typical to the BiggerPockets money listener set. Obviously someone with more complex streams of income or different streams of income will have a different view in this and we should build a different type of personal financial statement or have them modify components of this. But if your position is fairly normal and includes, generally speaking, these types of income streams, I also put in a little handy tax liability calculator. One of the problems we've been having over the years at BiggerPockets money here is that the what is your savings rate Question seems to stump a lot of people because it's like, well, I max out my 401k and I get my 401k match and how does that factor into my savings rate that's pre tax versus post tax? Well, it's all dollars you save less. All dollars you spend is your savings rate, whether they're pre tax or post tax. And so this will help you kind of understand that savings rate about what is your net income, how much do you spend, and how much cash are you accumulating per year, net of taxes? And there's a circularity because if you were to, for example, not contribute to your 401k, you will pay more taxes, which will reduce your overall savings rate. And so figuring out that circularity, I think is really important in planning out the journey to financial independence. And seeing how big of a propellant these tax advantage accounts can be is, I think, really powerful. So a little handy tax calculator. This is all for 2025. I will update this for 2026 as we pass into the new year here with new tax tables for all that kind of stuff. So how am I doing here on the income side? Mindy, any questions about this part?

A (14:27)

I think it's pretty straightforward. Again, just if it doesn't apply to you, remove the number that is pre populated.

B (14:33)

Awesome. And then on the expense side, I mean, very basic, this, this, this is not something that personal financial statements really ever have a challenge with. You can go anywhere on the Internet and download a very simple personal financial statement that help you do a budget. Right. So this is, there's not, there's nothing new here. I didn't attempt to be particularly interesting or unique or new with my budgeting here. I just put in some basic basic assumptions for household spending here and plugged them in in the most common ca. So if you're looking for a more robust budgeting tool, for example, this is not it. We're using this as an illustration of one's annual or monthly household spending in the context of really a deeper look at tax planning. And where my assets are. How much do I really have in my financial portfolio?

A (15:14)

All right, Scott, what's the next tab?

B (15:16)

Okay, next up, I have three tabs here that are optional schedules here for folks that have more complex situations. In some cases, we find that individuals will have a large number of debts. This is probably less common among biggerpockets money listeners, but it's fairly common among some of the more complex Finance Friday applicants that we've gotten. And for that, in order to determine a strategy to pay off debt, we need to know what your balance on each debt is, what the interest rate is, what the payment is, and in Some edge cases, we need to know the age of that debt. If you have a lot of very old debt, that can change the strategy a little bit in terms of whether to start paying it off now or let it age out of certain statutes. That's what this tab is for. It's just basic input fields and it's useful for us here at BiggerPockets Money as we look to think about certain specific planning situations. Next up is the real estate tab. So this is not a robust software tab. It's just, hey, Mindy and I have talked to a lot of people here at BiggerPockets Money who have rental properties. Right. Of course, you know, with bigger pockets and the experience we have there, there's, there's going to be an overlap. And so this is just a place to type in basic information about a rental property that I would need at a basic level to begin the discussion about what ought you to do with this rental property portfolio. Right. Looking at these numbers and having a discussion with somebody, I can begin to get a better picture or something and maybe begin to make some high level recommendations. This is what I would want as a very first glance, very high level overview, the minimum amount of information to begin thinking about those types of things. So should I go ahead, Mindy?

A (16:46)

I really like the two columns all the way to the right here, the annoyance factor and the prospects. Because right now this property might be awesome or might be awful, but you know that it's going to get better or you, you really have a good idea that it's going to get worse for factors that are specific to that property. What's the number one rule of real estate, Scott? Location, location, location. So having this, this in there can help you again, get a holistic picture of your rental properties, if that applies to you. And again, these are all optional. So if it doesn't, just skip on to the next one.

B (17:21)

All right, Mindy? Well, I think this is some good sheet, right?

A (17:24)

Spreadsheets.

B (17:25)

All right, well, we'll be right back with more of that good, good stuff after this. When I evaluate debt funds, I look for things like first position loans, personal guarantees, deep experience by the fund operator, low fund leverage, fast liquidity and consistent returns. These are some of the reasons why I'm excited to partner with Pine Financial Group. Their Fund 6 offers investors exposure to real estate credit, largely for construction and rehab, largely here in Colorado. With loans originated by an experienced originator. With over $1 billion in origination volume, 75% of their borrowers have been repeat customers. Over 17 years. They offer investors an 8% preferred return paid monthly and a 7030 LP GP split of everything over 10% paid annually. The lockup period is 9 months with liquidity available within 90 days. After that 9 month commitment, the fund is open to accredited investors only. The fund's minimum investment is typically $100,000, but Pine Financial is able to reduce that minimum for some investors and have agreed to do so for BiggerPockets Money listeners to a minimum of $25,000. Full disclosure I am personally invested in this fund through my self directed IRA and of course Pine Financial is sponsoring this message and our podcast. If you'd like to invest or check out their Prospectus, go to biggerpocketsmoney.com pine today that's biggerpocketsmoney.com pine Please note that returns are not guaranteed and may vary based on fund performance. Support for BiggerPockets money comes from Northwest Registered Agent. Your business identity is everything that shows what your business is about, from what customers see to what they don't see like operating agreements, meeting minutes and compliance paperwork. Get more for your business, more privacy, more guidance and more free resources with Northwest Registered Agent. Northwest Registered Agent has been helping small business owners and entrepreneurs launch and grow businesses for nearly 30 years. They are the largest registered agent and LLC service in the United states with over 1500 corporate guides and they have real people who know your local laws and can help you and your business every step of the way. Don't wait, protect your privacy, build your brand and get your complete business identity in just 10 clicks and 10 minutes. Visit northwest northwestregisteredagent.com money free and start building something amazing. Get more with Northwest registered agent@northwestregisteredagent.com Moneyfree.

A (19:43)

Support for the show comes from Public, the investing platform for those who take it seriously. On public you can build a multi asset portfolio of stocks, bonds, options, crypto and now generated assets which allow you to turn any idea into an investable index with AI. It all starts with your prompt. From renewable energy companies with high free cash flow to semiconductor suppliers growing revenue over 20% year over year. You can literally type any prompt and put the AI to work. It screens thousands of stocks, builds you a one of a kind index and lets you back test it against the S&P 500. Then you can invest in a few clicks. Generated assets are like ETFs with infinite possibilities, completely customizable and based on your thesis, not someone else's. Go to public.combpm and earn an uncapped 1% bonus when you transfer your portfolio. That's public.combpm paid for by Public Investing Brokerage Services by Open to the Public Investing Incorporated member FINRA and SIPC Advisory services by Public Advisors llc. SEC Registered Advisor Generated Assets is an interactive analysis tool. Output is for informational purposes only and is not an investment recommendation or advice. Complete disclosures available at public.com disclosures.

B (20:58)

All right, thanks for sticking with us. Let's get right back into our model conversation. Just to quickly go through this right, this has basic information around the address of the property. What is it? Is it a duplex? Is it a triplex? Is it a single family home? What does it look like, the value of the property, the mortgage balance that is remaining as of today, the equity in the property, that's just a calculation of course what its rent is or could be in the immediate future, the mortgage payment estimate for expenses on that property that are non mortgage. So think capex, vacancy management, utilities, all that kind of stuff and then the estimated cash flow which is an output or a calculation from that. And this tells me very basically how's this property performing from a cash flow perspective. The next two pieces of information that I need that I can't really find anywhere, there's no software that make this really easy is just like is this property a real pain in your rear? Like do you want to keep this thing and if it is, do you believe in it in the future? Like are you hanging onto this pain in the rear property because you have super high optimism in the future? And I can just tell with a simple one to three crude scale, yes, this property is super easy and has high potential. Great. Now I understand why I'm looking at a negatively cash flowing property in your personal financial statement. So this is what I would want to see if someone was bringing to me their, their position in a filled out spreadsheet form. And I could, I could begin to say, okay, I can mix, I can at least begin the discussion here with some basic information that will help, you know, guide me in the right direction to begin providing advice. And, and I, I would, I would be surprised if some people who own a bunch of properties don't fill this out and come to their own conclusion without having anybody. So just by filling this out and saying this property is pretty annoying and I'm not very optimistic about it. Hmm, maybe ought to sell that one. So I think that that's what this is for. This sheet comes with a population of seven rows. You can do one of two things here. If you have more properties. You can either add rows or just duplicate the tab. But I presume that if you're going to be owning dozens of rental properties that you are basically competent in Excel. And so I did not build it out for the mogul here to put their financial position together.

A (22:57)

Awesome. Scott, what is the last optional tab?

B (23:01)

This is kind of a catch all for other assets, right? So I kind of have this concept of a pension that comes up and I have, you know, when will that date of that asset be realized or available? What is the estimated cash flow? What is the value of that asset? Sometimes, you know, a pension or Social Security does not have any value. You cannot sell that asset to anybody else. But it does provide a stream of income. So there's an option to provide an asset value and a cash flow potential here. What is the liquidity of something? I have a simple one to four scale here, which is one is very liquid. This would be as liquid as a stock market investment in a highly traded ETF or index fund. I have moderately liquid a rental property. You could sell it in less than 12 months. I have a very long term investment. Imagine something you give money to a private equity fund and it's year one of the fund and it's a five year fund at least. That's a very illiquid investment that will not be realizable for a long time. And four is total illiquidity. This is Social Security. You cannot sell your Social Security income stream to somebody else. That's kind of where I have that. And that gives me just a quick idea about what, what this asset looks like. And then last I have this confidence lever here of hey, am I, am I really confident in this asset? Right? If I give my money to a private equity fund, maybe I'm not that confident in it. Maybe I'm like a two or three out of, out of four in terms of my confidence level in this thing. But if I'm in Social Security, maybe I'm really confident in that. Or if I'm in a, in a pension fund here in Colorado, I'm very confident in that. And I'm at 2 or 3 if I'm in Chicago. Sorry guys, if you're from Chicago, so I don't mention there, I think there's a little bit more reason to be a little bit more pessimistic about that. But that's just the qualifiers there. And this tells me what you're expecting and how you feel. I think it's remarkable that a large percentage of America cannot do this they cannot tell me what their net worth is, what their asset location is and what they're invested in at an up to date snapshot. I think that the biggerpocket's money listener population will generally be able to do that and sometimes can maybe frustratingly lack the right format to make that easy. And this is my, my first attempt at this and again I will modify it and update it for different Personas over the years here as we really map into people's specific situations and the specific deep dive into a real estate investor's portfolio is, you know, that's going to provide a very different snapshot into their finances. I'm going to want to emphasize different things when looking at that than I would somebody who is all in their 401k and all invested in Voo, for example. Right. So this will hopefully evolve to emphasize those different things. But this is like my first attempt at something that could be a catch all for most biggerpockets. Money listeners just get a helpful initial glance at what their portfolio looks like. But yeah, respond in the comments here if you can answer this question, say yes, of course I can answer that. This or no, I actually can't express my personal financial statement, my net worth, at least not in a way that breaks out my my investment portfolio from my other net worth very easily. I would love to love to hear if this is actually helpful to anybody as a quick spreadsheet.

A (25:50)

I think this will be really helpful to all of our 31 day challenge members because this is like I said at the beginning, this is the day one task. So if you want to get a jump start on your day one task, go to biggerpocketsmoney.com resources and download the personal financial statement and start filling it out.

B (26:08)

Awesome. I do want to call out however, that this, this spreadsheet is not a substitute for the software that Mind use. We are actually, we are big fans of monarch.com Monarch Money, also known as Monarch Money and we have a partnership with them where you can get 50% off of Monarch using the code pockets P O C K E T S. Mindy actually walked through setting that up for the first time. I've used it for years with my wife Mindy and Carl set this up not two or three months ago so you can, you can find that video at by typing into YouTube how to set up Monarch Money step by step to track your net worth, spending and budget. The advantage of course with using a software like a Monarch instead of a spreadsheet is that you can get a Real time snapshot of your financial position. The advantage of using a spreadsheet like this is to fill out that snapshot to send to somebody else like your spouse or like, like a financial planner to get a quick introduction to how you think about planning for financial independence. And so I don't think they're mutually excus exclusive but I primarily used Monarch for all real time spending all of my budgeting whenever I want to look at what my an updated net worth that's there in Monarch in the app on my browser, on my phone. And this spreadsheet is really more of a, hey, I'm thinking about having a discussion with a financial planner or thinking about, you know, some high level goal setting and what I want in the next year or two. Then I'll take a look at my this this and break out my net worth in a little bit different of a way to give me an idea of what's my FHIR portfolio look like which no software in my opinion does a great job of today.

A (27:37)

All right Scott, this was a lot of fun. I am super excited for the 31 day challenge. I am super excited for people to do just fill this personal financial statement out so they can start to get a better handle of all of their financial picture again. That location is biggerpocketsmoney.com resources and download the personal financial statement or sign up for the 31 day challenge biggerpockets money.com 31days and we will send it to you on January 1st.

B (28:04)

We're going to make a lot of these over the years we have like this is, this is fun for us. If you have a, a new resource, you know, some kind of, some kind of tool or some kind of spreadsheet or financial plan or whatever it is. Let us know in the comments here what we can build and we'll put that into the backlog and spit these things out. They'll all be free@biggerpocketsmoney.com resources for you to check out. But let us know what we should be building next. We thought this was a very basic first starting point for personal finance and DIY resources.

A (28:35)

Yep, Scott is having an absolute blast building this stuff. So please help him be an even bigger nerd. You can email Scott@BiggerPocketsMoney.com or Mindy@BiggerPocketsMoney.Com all right Scott, should we get out of here?

B (28:48)

Let's do it.

A (28:49)

That wraps up this episode of the Bigger Pockets Money podcast. He is Scott Trench. I am Mindy Jensen saying stay bright night.