CAPTURING YOUR PERSONAL FINANCIAL INFORMATION
Maintaining proper personal financial records is a real struggle for many just as is
restraining impulsive spending. It is however important that you start right by capturing
those critical information in a manner that can be easily retrieved and updated. For any
individual seeking a better control of their personal finances, using a Personal Financial
Snapshot (PFS) is a good start as it helps bring together information that could support
better decisions when considered all together in their wholeness, rather than individually.
An analogy could be drawn to having your Medical or Health Card accessible when you
visit a Doctor without which it would be difficult to trace your Health records. A Doctor
would typically check your file to review your medical history for a record of
documented allergies or reactions before any prescriptions are made.
The Personal Financial Snapshot (PFS) helps you achieve the needed structure and
makes it easier to identify gaps in critical decisions or actions that are often deferred like
having a Will when this is detected during the process. With the (PFS) you are able to get
a single view of your financial obligations as well as the resources that you have
available to meet these obligations in the form of a Personal Balance Sheet. You will be
better acquainted with your true net-worth and also have a sound basis for making
adjustments or even plans based on a full view of your current situation.
It is an accepted fact that it is quite impossible to find your destination if you don’t know
where you are starting from. The Personal Financial snapshot is that start that every
individual should have in terms of gaining a proper control of their finances.
I have often heard men boast that they have all their critical financial information stored
up mentally, and even support such arguments with the strong needs for secrecy to
protect themselves. The sad part though is that the financial systems in many jurisdictions
carry significant amounts in unclaimed balances from bank accounts simply because such
balances were never accounted for by their owners while they were living, nor captured
in Wills nor disclosed to their next of Kins either !!! Keeping proper Personal Financial
records therefore is not only a practice that is critical to the well being of the individual
but also a strong indication of financial responsibility that should be well encouraged. For
record keeping, a simple Word file that can be updated, together with an Excel sheet
covering the critical areas would suffice (See Sample PFS).
With the proper financial records you will find that it is so much easier to take long term
financial decisions which are based on facts rather than emotion, and in a very logical
manner too. Your records would also aid planning and serve as an invaluable reference
point for reviewing future plans against actual outcomes.
It is incontestable therefore that the financial success of any individual starts with
initiating and maintaining accurate personal financial records. Financial success has
never been based on happenstance or chance.
Author: Thompson (October 2012)