Real Estate Info & FAQ

Personal Financial Analysis

I have been wondering about something lately. In management, there is a term called a SWOT (actually pronounced Swat) Analysis. This tool is particularly valuable when analyzing a company in realtion to its competitive landscape. But, could you use the terms to analyze your own personal financial picture?

What does the acronym stand for? It stands for Strengths, Weaknesses, Opportunities, Threats. I can see this breaking down like this - and this is a ROUGH breakdown...I am still going over this in my head.

> Strengths - What strengths does my personal financial life have? Do I have good income, low debt, good credit, or good habits?

> Weaknesses - Opposite of the above. Do I have poor habits?

> Opportunities - What opportunties are in front of me? These could be a raise, an investment, a business decision, etc.

> Threats - This could be anything and could be boiled down to "Life". But I think that if you have young children, like I do, paying for college could go here.

I do not think that the answers you get are as valuable as the process you would go through in working this out in your mind.

I am open to all comments on this!

Have a great weekend.

Labels: Credit, peronal finance

posted by jkballentine @ 2:59 PM