Personal finance is about self-evaluation, as you need to get a firm grip on your own finances.
If you want to succeed in money then you always need to look at your life, your goals and your choices.
Here are 10 questions that you should ask yourself in regards to personal finance.
What was the Last Money Mistake I Made?
Usually this is a spending mistake and involves you spending money in some way that you shouldn’t have, but why did you make this mistake? What was the situation for this spending? You need to find the reason as to why you spent the money so that you can avoid this in the future.
Am I Realistic in Savings for Retirement?
You should head to a good retirement calculator that you can find on the Internet and see what you pace looks like. Realistic numbers are 3% inflation and 7% return on investments.
This will help you to determine if you are on track for when you want to retire.
What Can I Do in Terms of Education for my Children?
The first thing that you need to decide is how you intend on helping your children through their college years. If you are going to help then you need to look at what you are saving for this.
Do I Have a Will or Life Insurance to Protect Dependents?
If you are a person that has dependents in your life then they will be your main priority to make sure they are looked after, once you are gone.
It is a good idea to get a term life insurance for this situation.
Is my Emergency Fund Big Enough?
It is a good idea to have a good amount in a savings account that can be used for emergencies. If you do not have an emergency fund right now, then you need to start one.
What is my Plan if I Lose My Job?
What would happen if you lost your job? Do you have a plan to get more work? You need to thing about these things and have a plan in place, as you will need to survive financially in the event you become unemployed, this is where your emergency fund comes in.
What Happens if you Lose your Spouse?
The loss of a spouse can have financial implications for you, so what is your plan if something happens? This is where an emergency fund will help or another financial plan. You need to explore all of your options in the event that this happens.
What about the Big Expenses?
If you know that big expenses are coming in the next year, you don’t have to panic; instead you can start saving for them right now. If you know a certain bill is coming for a certain amount, divide it into chucks and save that amount each month, so that you can pay it easily.
What about Future Expenses?
This question makes you look further down the road. If there is a purchase that you plan to make in the next 5 or so years, you can set a goal for when you want to reach this by. You can set an approximate date and figure out how much you are able to save each month to get there.
What Can I Do to Improve My Income?
Personal finances is dependent on your income so you need to think if you are able to change your income level through getting a better position, finding a different job or picking up a part time job.