Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
When applying for loans or asking for financial assistance of any mode, the needy one is evaluated on the basis of credit history maintained so far. This is to know about both the 'capability' and 'interest' of the individual in paying the debt in timely manner.
To have this information, one requires a way to know about the 'financial stand held by the individual.
People are increasingly getting inclined towards the usage of a 'performance measurement and management tool' called BSC (Balanced Scorecard). This depends on the metrics that are dug and grouped on it under the categories found useful. This is to evaluate the progress or growth of the task in an unbiased and practical manner.
In other words, by framing a personal finance scorecard to assess the financial position of the concerned individual, one can carry out the job of 'personal finance management' in an effective and precise manner.
Some of the aspects that can be tested using this tracking tool are- 'structure', 'savings', 'financial history' and 'benefits arising'.
The steps comprised as 'personal financial planning' can be put together as 'assessments of personal financial documents like balance sheets and income statements', 'fixing goals and aims', 'developing a plan', 'administration of the plan' and 'monitoring and assessing the results'.
This is the actual scorecard with Personal Finance Dashboard and performance indicators. The performance indicators include: structural perspective, number of emergency funds, average outstanding balances on credit card, retirement plans index, number of insurance schemes subscribed to, frequency of fixed assets updation, credit and savings perspective, household expenses: gross salary ratio, credit history report frequency, savings: gross salary, savings improvement, financial history perspective, credit history being questioned index, instances of non-fulfillment of schemes ratio, instances of tax rules non-compliance, credit position improvement, benefits and transparency perspective, cost savings on credit card index, time savings, transparency level, increase in the options for loans.
How is this book different from 796 other book titles about KPIs on Amazon?
"Before writing a single line, I formulated some guiding principles, one of them was: "If our clients ask, "How can I find a good KPI for..." - I want this book to provide a perfect answer."