Prepare a Personal SFP

A. Get a piece of paper.

B. Write your current savings and everything that you own (clothes,

money, gadgets, jewelry etc.)

C. Write the amount that you owe to your friends, family members,

parents (tuition)

D. Deduct the amount you owe from the amount you own

E. Associate amounts owned with assets and amount owed with

liabilities with the net amount as equity.

Processing Questions:

1. How much is your equity?

2. Do you have greater assets than your liabilities? Or vice versa?

3. There might be some cases your computation is zero or even

negative. This means that your liabilities to your friends, relatives

and/or parents are higher than your assets.

4. In business, having more assets does not mean that the business is

earning but usually companies have assets that are bigger than

their liabilities.

5. Reflect on the importance of having a personal statement of

financial position.​