Know where you stand: set your financial goal

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Welcome to finder's financial bootcamp, a seven-week crash course that will teach you how to take control of your finances and get your money into shape for life.

Week 1 is all about becoming your own personal accountant.

Step 1: Get your free credit report and credit score

This will only take five minutes and will let you know exactly where you stand financially. Just make sure you have your driver's licence handy as that will be used to verify your identity. Click here to get your free credit report now.

So why is it important to know your credit score anyway? Basically, a credit score is what lenders use to determine your ability to repay debt. Whether you want a home loan, a car loan or even a new credit card, a good credit score is crucial to your chances of borrowing money in the future. Once you know your score, you’ll have the full picture and you'll know what to do if you need to improve it.

Step 2: Get a clear picture of your current financial situation

Before you can start thinking about your future money goals, the first step is to get a clear picture of your current financial situation. Your credit score sums up your overall credit position. It’s calculated based on the information in your credit report, which includes details of your history of paying off credit cards, loans and other bills, such as your utilities.

Because your credit score is used to determine your ability to repay debt by lenders, a good credit score is crucial to your chances of borrowing money in the future.

So, what is a good or bad credit score? An Experian Credit Score is a number between 0 and 1,000. The higher your score, the better.

Experian Credit Score

Credit Band	Score
Excellent	800-1,000
Very Good	700-799
Good	625-699
Fair/Average	550-624
Weak/Below Average	0-549

There are plenty of simple things you can do to improve your credit score, such as disputing any incorrect listings and taking care not to submit multiple applications for credit in a short space of time. However, the most important step you can take is to understand and take control of your debt.

Step 3: Set a goal

Now that you have a better overall picture of your finances, it’s time to sit down and start visualising your financial future and what you want to achieve. At the end of this seven-week course, where do you want to be?

Are you saving towards a specific goal, like or buying a new car? Do you want to pay off your credit card debt and start putting some money aside for a rainy day? Or do you just want to finally feel like you’re in control of your finances, and that you’re not simply surviving from one payday to the next?

You’ll need to work out the following:

1. What you want to achieve.
   Your goal could be to save a specific amount, pay off all your debts or just get to a point where money worries don’t control your life.
2. When you want to achieve it by.
   Putting a timeframe on reaching your goal will motivate you to take action.

Once you have a clear goal in mind, you can realistically devote yourself to controlling your spending, paying off your debts and saving for a brighter financial future.

• Have a good understanding of your current financial situation
• Have a crystal-clear picture of your financial goals