Definition and Meaning of Personal Financial Statement
A Personal Financial Statement (PFS) from Old National Bank is a formal document that provides a comprehensive overview of an individual's financial situation. It includes detailed information about assets, liabilities, income, and expenses, allowing both the individual and the bank to assess financial health. This document is crucial for various financial transactions, including loan applications, as it helps lenders evaluate creditworthiness and the ability to repay debts.
The PFS typically categorizes assets into liquid assets, such as cash and bank accounts, and non-liquid assets, like real estate and investments. Liabilities are also categorized, including short-term debts, like credit card balances, and long-term debts, such as mortgages. By presenting this information clearly, the PFS aids in understanding net worth and overall financial stability.
How to Use the Personal Financial Statement
The Personal Financial Statement from Old National Bank serves multiple purposes, primarily in the context of loan applications and financial planning. Individuals can use the PFS to provide lenders with a clear picture of their financial status when applying for mortgages, business loans, or personal loans. Additionally, it can be a valuable tool for personal financial management, helping individuals track their financial progress and make informed decisions.
To use the PFS effectively, individuals should ensure that all information is accurate and up-to-date. This involves regularly reviewing and updating asset and liability values, as well as income and expense reports. By doing so, users can maintain a realistic understanding of their financial health and prepare for any necessary adjustments in their financial strategies.
How to Obtain the Personal Financial Statement
Obtaining the Personal Financial Statement from Old National Bank is a straightforward process. Individuals can request the form directly from the bank’s website or visit a local branch to obtain a physical copy. The form is typically available in both digital and paper formats, ensuring accessibility for all users.
For those who prefer to fill out the form digitally, Old National Bank provides options for downloading the PFS from their website. This allows users to complete the form at their convenience and submit it electronically, streamlining the application process. It is advisable to check for any specific requirements or instructions provided by the bank to ensure compliance.
How to Fill Out the Personal Financial Statement
Filling out the Personal Financial Statement requires careful attention to detail. Users should begin by entering personal information, including name, address, and contact details. Next, the form will require a comprehensive list of assets, categorized into liquid and non-liquid assets. Examples of liquid assets include cash, savings accounts, and stocks, while non-liquid assets may include real estate and retirement accounts.
Following the assets section, users must provide details about their liabilities. This includes all outstanding debts, such as mortgages, car loans, and credit card balances. It is essential to be thorough and accurate, as this information directly impacts the assessment of financial health.
Finally, the PFS will require users to summarize their income and expenses. This section should reflect monthly income from all sources, including salaries, bonuses, and rental income, alongside regular monthly expenses, such as housing costs, utilities, and groceries. A well-completed PFS provides a clear financial snapshot that can be used for various financial decisions.
Key Elements of the Personal Financial Statement
The key elements of the Personal Financial Statement from Old National Bank include several critical sections that collectively provide a full picture of an individual's financial situation. These elements typically consist of:
- Personal Information: Basic details such as name, address, and contact information.
- Assets: A detailed list of all assets, categorized into liquid and non-liquid assets.
- Liabilities: A comprehensive listing of all debts and obligations.
- Income: Monthly income from various sources, including employment and investments.
- Expenses: Regular monthly expenses that impact cash flow.
Each of these elements is crucial for providing a complete financial overview, which is essential for lenders to assess creditworthiness and for individuals to understand their financial health. By carefully detailing each section, users can ensure that their PFS accurately reflects their financial situation.
Who Typically Uses the Personal Financial Statement
The Personal Financial Statement is commonly used by individuals seeking loans, including mortgages, personal loans, and business financing. Lenders often require this document to evaluate the creditworthiness of applicants. Additionally, financial advisors and planners may use the PFS to help clients assess their financial health and make informed decisions about investments or savings strategies.
Small business owners may also find the PFS valuable when applying for business loans or seeking partnerships. By presenting a clear financial picture, they can enhance their credibility with potential lenders and investors. Furthermore, individuals preparing for significant life changes, such as retirement or purchasing a home, may use the PFS as a tool for financial planning and assessment.
Examples of Using the Personal Financial Statement
There are numerous scenarios in which the Personal Financial Statement from Old National Bank can be utilized effectively. For instance, when applying for a mortgage, a borrower may submit their PFS to demonstrate their financial stability and ability to manage monthly payments. This can enhance their chances of loan approval by providing lenders with a clear understanding of their financial situation.
Another example is for small business owners seeking a loan to expand their operations. By presenting a well-prepared PFS, they can showcase their business's financial health, including personal guarantees, which may be required by lenders. This document can also assist in securing better loan terms by illustrating the owner's commitment and financial responsibility.
Individuals may also use the PFS for personal financial planning. For example, a person considering retirement can analyze their PFS to determine if their current savings and investments will support their desired lifestyle. By identifying areas for improvement, they can adjust their financial strategies accordingly.
