Finance is one, if not the most important thing in our society, across every single nation. People are paid based on the value of their work, products, or services and most often trade hours of their time for a set amount of money based on what the market dictates. If you do a good job at work, sell valuable products and services, and have a well-defined plan for keeping, growing, and investing your money then you will need some financial tools. That’s why in this article Chenoa Fund Loans will be discussing the topic of financial tools that loan officers should discuss with credit-worthy borrowers.
Personal Financial Tools
A “credit-worthy borrower” will be seen differently depending on the lending company, but also by the individual loan officer. If the loan officer decides that the person may be able to increase their credit-worthiness even more, then they can offer to show and explain how some of the following financial tools work and how they should be using them:
- Income and spending tracking
- Credit monitoring
- Investing software/companies
- Automatic credit payments
- Budgeting software
Because you are more than likely working a job, you will need to know how much you’re making every month, and subtract that from how much you’re spending. An income and spending software will show you all of this in an easy to understand manner and may also help you create a budget. You need credit monitors like Credit Karma so you can check your credit scores every month to see if they went up or down, and what is affecting the changes. With automatic credit payment tools you will also stay on top of your bill and will help your credit increase.
Business Financial Tools
If you are an entrepreneur and have a business or businesses, then you will require a different set of financial tools. You may need the following, and a loan officer can also help explain how these tools work:
- Software for accounting
- Tools for budgeting
- Payroll management
- Tax software
- Invoicing tools
When you take the leap from worker to business owner or self-employed, you have other things to worry about. If you don’t have the money for an accountant, you can use software to help you sort everything out. Because a business needs income to grow, just like you, it is essential to understand income and expenses and budget money for certain expenses. If you have employees then you’ll need to manage payroll to know who you’re paying and how much. Because you’re spending money on certain things, it is also a good idea to have tax software which will save you a lot of money come tax season. It may even save you a trip and the money you were going to pay your accountant. Finally, because your’re doing business and people are paying you money, it’s better to have invoices to send so you can keep a history of your business, as opposed to simply taking cash.
In conclusion in this article we discussed the topic of financial tools and how a loan officer can help you understand them better. Because the United States revolves around money and finances, it is imperative that one understands how to keep, manage, grow, and invest the money we earn. Because these things are not taught early on in life, the majority of the population remains poor for the rest of their lives unless they seek the knowledge and put it to use in their own lives, as well as others who may need it.