Financial statements lead to informed decisions and peace of mind

Jul 19, 2023 | Insights

Create financial statements for peace of mind, informed decisions, commitment to change, and organised life and money.
As a financial planner, I would ask clients early in the financial planning process to develop a set of statements of their income, expenditure, assets and liabilities. I have continued to include this practice in the first phase of my coaching process: building a foundation of self-knowledge.

There are three reasons for this. First, I learnt early on that clients rarely accurately understand their financial situation. It was always instructive to ask clients for an initial assessment of their finances, only to find that their more accurate financial statements showed their initial assessment to be out by as much as twenty to thirty per cent.

Financial statements lead to informed decisions.

Knowing if income exceeds expenditure or vice versa is essential. Again, it was common for clients to underestimate their spending on the first pass, even though their savings had fallen or their short-term liabilities (credit cards and overdrafts) had risen.

Poor self-understanding is not a good place on which to decide your future. A firm and accurate picture of your current situation (not just your financial situation) is essential for making informed and sound decisions about your future.

It’s good to know where you stand.

Second, I found that clients were more anxious about not knowing their situation than knowing it was not good and deciding to do something about it. The anxiety of not knowing can be debilitating, leading to sleepless nights and worried days. Clients felt better when they understood their situation and made decisions to deal with problems. Putting their heads in the sand never really helped.

Finally, creating financial statements helped clients commit to organising their life and money. Financial statements take time to prepare, and whilst statements of income, assets, and liabilities are relatively straightforward, expenditure statements can be time-consuming and painful. Fortunately, apps such as MoneyWiz make it much easier to build and keep financial information up to date.

How to create your family financial statements

So, here are three good reasons for constructing statements of your financial situation: self-understanding, peace of mind and commitment to change, security and purpose. But how do you go about it?

Starting a project like this is always tricky, so I have provided a template (from my earlier Living Money brand) to help you. In addition, consider purchasing an app such as MoneyWiz to help you become more accurate.

Financial statements are the key to peace of mind, informed decisions and a commitment to change, so start with a financial statement to help you organise your life and money.

Photo attribution

Photo by Alejandro Escamilla on Unsplash

Audio link

Take it further

Download your family financial statements template from here.

Read more about financial life planning and financial statements in the author's book:

Deedes. Jeremy. Right Money, Right Place, Right Time - Personal Finances to Transform Your Life and Secure Your Future. Rethink Press Limited, 19 Jan. 2015.

Find out how the MoneyWiz app can help you become financially well organised at (This is a personal recommendation based on the author’s use of the app; there is no commercial or other relationship between the author and Money Wiz)


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