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Key takeaways
- A PFS is the household equivalent of a business balance sheet.
- Lenders typically require a current, signed PFS for personal guarantees and high-balance loans.
- A complete PFS includes both liquid and illiquid assets, every form of debt, and contingent liabilities.
- Maintaining a PFS quarterly is one of the highest-leverage habits a household can adopt.
How Olomon thinks about this
Olomon is, at its essence, a continuously updated personal financial statement. Connect accounts, add what can't be connected, and the balance sheet is always there — ready to share with a lender, advisor, or estate professional.
In-depth definition
Most households assemble a PFS only when a bank asks for one — typically for a mortgage, line of credit, or personal guarantee. The result is usually rushed, incomplete, and out of date by the time it is filed. A continuously maintained PFS turns a stressful exercise into a five-minute task and produces a far better number to plan against.
Frequently asked questions
No. A credit application captures information the lender needs to evaluate one specific request. A PFS is a comprehensive picture of the household's financial position, often used as part of a credit application but useful well beyond it.
Sources
Primary, authoritative references.
- 1
U.S. Small Business Administration
SBA Form 413: Personal Financial StatementCited for: Standard PFS used by federal lenders
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Cite this page
APAOlomon Editorial Team. (2026). Personal financial statement. Olomon Financial Glossary. https://olomon.com/financial-glossary/personal-financial-statement