Monday, July 07, 2008

Understanding Your Financial Health

I just took the quiz at BillsIQ to see how I/we rate in overall financial health. There are questions about credit, debt, budgeting, whether or not you've ever had to file Bankruptcy, and if you have a Life Plan for your finances. While we're in pretty good financial shape right now, just answering the questions helped me to see that there are other things we should be doing. I ended up with, not this score of 91%, but pretty close with 89%, or a B.

Looking at my scores in the various categories, I see that I only got a 67 in the Life Plan part. I think that's probably because we focused so much on getting out of debt and the 'right now' that we haven't really formed a plan otherwise, besides Jeffrey's 401(k).

Moving on to the next step, BillsIQ is going to give me Answers, Tips, and Advice. It takes each of my answers and explains why that answer was right or wrong and gives a little more information on what to do or how to improve.

Things I learned: We need a budget, not just an abstract idea in our heads, but an actual budget. We should have a will, and personal finance can be complicated and stressful. Actually, I knew all that already, but it's good to see it spelled out. It's not enough just to know it. We actually have to do something about it.

BillsIQ seems like a very handy tool for getting an understanding of your financial health and some ideas for how to improve your credit score.