7 Financial Records Critical To You Creating a Workable Budget
Do you know what financial records you need in order to create a workable budget? Before you begin to create your budget, you need to have these specific records.
Financial Records You Need to Create a Budget
1. Get a Copy of Your Credit Report
This post does contain affiliate links. What this means is that if you sign up for any items through my link, I will get paid but you will not be charged with the exception of the MYFICO score.
Your credit report is a financial record which contains the most accurate record of what debt you have and who you owe money to. If it is not accurate, you can have certain information removed by disputing it. However, this is ONLY for inaccurate information. Accurate information will remain.
Before starting your budget, get yourself a free credit report from one of these places:
Credit Karma, Credit Sesame and MoneyTips.
2. Get a Record of Your FICO Score
Most people want to improve their credit score. You can’t improve something without knowing exactly what needs to be improved. You can get a copy of your credit score from MyFico. My FICO charges to get a credit score. However, this is the BEST and most and most accurate account of your EXACT credit score. You can also get your credit score from Credit Karma, Credit Sesame and MoneyTips. I have found the scores to sometimes be off by a couple of points. If your credit score is high this won’t matter. If it’s low then….. yeah, go to MyFico.
Part of getting out of debt also leads to increasing your credit score. The two most important aspects about your credit score is your credit utilization and timely payments. This is why credit scores matter.
3. Obtain 3 to 6 Months Worth of Checking and Savings Bank Account Records
This may be the easiest financial record for you to obtain. Simply go online at your bank’s website and print three to six months worth of statements. It’s just that easy.
4. Look at Your Car Loan Statement
One of the things that amazes me is when people actually get a car loan and pay on it for the entire term. I mean, why not try to pay the thing off faster?
Some of us will go and buy a car and once we get it we are on auto pilot. We don’t think about the interest rate we got and if we should or could refinance it. We also don’t think about adding maybe an extra $50 or $100 to the monthly payment to decrease the time we are paying on the debt.
If you have a car loan, then this is one of the items you are going to use to create a budget. You car loan, if it is one of your lowest debts, may be one of the items you want to increase in terms of monthly payments. If you can free up about an extra $400 to $500 you will be a ROCK STAR!
5. Get Copies of Your Credit Card Statements
Similar to your bank statements, pull up your credit card statements. You will be using your credit card statements for two reasons:
- To see how much you are spending on a monthly basis in addition to what comes out of your savings/checking account.
- To look at your interest rate and to also determine if this is a debt that you may want to prioritize. The key to this is that you CAN NOT add any more debt to the card(s).
Credit Card Statement is a Financial Record You Need
Credit Card Statement is a Financial Record You Need
6. Do You Have Any Personal Loans that Must Be Paid Back?
Depending upon your situation, you may have a personal loan that may not have to be paid back. You may not have this loan as a documented financial record. If you do not have to pay back this money then it’s not a loan, but a gift.
However, even if it is a loan from a family member with an indefinite loan repayment schedule, INCLUDE it in your pack of financial records.
You can simply write on a piece of paper, “I owe NAME $600.00” It will be a consistent reminder not to forget about this loan.
7. Student Loan Repayment Must be Included in Your Budget
Now hear me out. I know a lot of people are on some kind of income repayment plan for their student loans. So yes, you will have to include the amount of your income re-payment BUT I also want you to consider INCREASING that payment amount if you have room in your budget.
I want you to PLAN for an increase in your budget (if you can).
Your student loan documents are financial records you MUST look at and have.
Student Loan Debt Weighing You Down?
Once you gather all these documents, sit down and BREATHE. It is going to be OVERWHELMING. Do not despair over what is in front of you. You have just taken your first step to getting in control of your finances. This is going to be o.k.
Grab these financial records and create that budget!!!!