What’s a PFS?
5 Reasons to have a PFS Personal Financial Statement Ready to go and How to Get One
What Is A PFS?
A PFS or Personal Financial Statement is a snapshot of your finances including your Debts, Liabilities, Assets, and Net-worth at any given moment in time. Think of it as a Balance Sheet for People.
You know what a balance sheet is, right? Balance Sheets are those things we’ve all graded banks on over the last year (2009). That’s right. We’ve all graded banks pretty harshly, but I’ll bet that most people reading this haven’t filled out a Personal Financial Statement in the last 2 years. In fact, 95% have never filled one out.
Why Do You Need one?
There are TONS of good reasons to have one. I’ve managed to single out 5 that mean the most to me.
1. Filling out a PFS will force you to collect & review documents you should be collecting and reviewing on a regular basis. Things like: Tax Returns, Credit Card Statements, Liabilities, Assets, and Bank Statements.
2. If you are ever going to apply for credit it will show you how your lender will view you BEFORE you apply. Wouldn’t that be helpful to know?
3. IF you apply for business credit in today’s loan environment, post Financial Chernobyl, your lender will require it along with the documents you used to fill it out.
4. Having a PFS is not only good, but necessary for solid financial goal setting.
5. They are too easy to fill out not to have one.
Where to get a Blank Personal Financial Statement or PFS
This is one of the best I’ve found online. Go here —> Best PFS.pdf. The Small Business Administration has a standard business related, or you can contact your banker for a Bank Specific PFS.
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