What Is On Your Financial Profile?
Posted by: Staff Writer | Jul 20,2007
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If you were to take a picture of yourself right now, it might show hair that needs to be cut or a little extra weight around the waist. However, if you wanted to take a picture of your financial profile, do you know what you would see?
People can sometimes take ostrich-approach to their finances in fear of what they'll see - they'd just rather not look. Get a glance at your own financial profile by answering the following questions and obtaining the necessary information.
Your Assets- What's your annual income from your job?
- What other sources of income do you have?
- What do you own that has financial value, such as a car, boat or house?
- How much do you have in your checking, savings, stocks, bonds or other investments?
This is a list of your assets and it shows your value. Other assets could include your family wealth or your career potential. For example, if you have solid education and are in a position that will likely be rewarded with promotions and raises, this too makes up your financial profile, although it is difficult to quantify potential.
Your Debts and Credit HistoryThe other side of this equation is made up of your debts. This isn't just what you owe, but also your financial past.
A complete financial picture has to include reports from the credit bureaus. TransUnion, Equifax and Experian all must let you have one free copy of your report each year.
Your credit report will show information on it that includes your debts, your payment history, where you live, whether you've been sued, arrested or filed for bankruptcy. It will also include liens and pay garnishments.
Just as your future is part of your profile, so is your past. It too can be difficult to quantify other than to say that a good FICO score or credit score can make getting credit easy and a poor score can make things much more difficult and expensive.
As you look at your financial profile, do you like what you see? While not everyone will be satisfied with the same financial conditions, most people would like to be able to know they can pay what they owe each month and that if there were an emergency, they have the resources to cope with it.
Time to Fix Your Finances
If you don't like what you see, then it's time to fix it. Begin with your past. Contact any merchants who have reported negative things about you to the credit bureaus. They can be sometimes persuaded to remove negative remarks if there has been or will be a sincere effort to pay off your debt.
Next, address your present. If your debts are outweighing your assets, then consider preparing a budget. A little belt-tightening could help with the next step, the future.
What do you want? Where do you want to be in five years, in ten years and in 20 years? Saving and working toward your goals can help focus your financial profile and makes you as happy as dropping ten pounds.
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