You Need A Personal Financial Statement Template – Here's An AI Generated One.
You Need A Personal Financial Statement Template – Here's An AI Generated One.
It's a fun AI-experiment.
I was playing around with AI tools this week, and since a lot of my friends, co-workers, and family members keep asking me for advice on how to manage their financials, I always recommend a personal finance template that they could use.
Some people use Notion for this, while others use Excel or Google Sheets. Personally, I prefer Google Sheets because it's easy to access online and is similar to Excel.
A personal financial statement needs to be dynamic. It should change based on variable changes. If not, you could just write your financial intentions on a piece of paper for the next 10 years, and that would work just fine. Keeping all of that in mind, I started exploring AI tools like GPT, Gemini, and Claude, to see if they could help me generate a personal financial statement template that I could recommend to people.
I worked on one that I think is pretty cool. It includes variables such as expenses, inflation, and the growth in a person's earnings or revenue. These are all factors that affect the financial life of an average employee or person.
Why You Definitely Need a Personal Financial Statement
This applies whether you're an entrepreneur, managing a family business, or a nine-to-five employee working in tech or any other field. Having a personal financial statement document is crucial. It helps keep you in check, focused on what you're doing now, and what you'll be doing in the next five to ten years.
While there are circumstances beyond your control that can change this financial model, a well-built template should be adaptable. For instance, you might get a big promotion that drastically increases your earnings, or you might get laid off, which would also affect your model. The point is, as long as you consider all these variables, the model will serve you well in these situations.
When you're getting a promotion or applying for one, you should input this into your financial statement and see how it will affect your future. How will it impact your mortgage, your purchasing power? Will it allow you to make smarter investments?
This personal financial statement I (or actually, GPT) built focuses on one thing: improving people's financial education. It’s not just about tracking what you've spent in the past few years, but also about understanding how you'll grow financially in the future and how you’ll invest your money accordingly.
Incorporating Smarter Investment Strategies
Smart investors like Warren Buffett and Benjamin Graham use investment strategies that allow them to make money even while they sleep. Now, I'm not going to tell you what investment strategy to use or where to invest your money—that’s something to discuss with your financial advisor. But you should definitely use this template and consider those elements.
I also asked the AI to factor in investment considerations while focusing on this template. However, the investment part is just a general idea and not a specific recommendation. Investments vary by country, region, and other factors. You might have bonds at your bank offering better rates, or you may choose to invest in something riskier. All these decisions are between you and your financial advisor.
So check out the template and play around with it. As long as you keep in mind that you have an idea of what your financial future looks like, you're on the right track.
The template → https://albusi.com/product/personal-finance-model/