Personal finance questions

Five Personal Finance questions that Everyone should answer

Understanding your financial status is important. But, the question is:

how well you know the money you have?

Even though you can manage your money on a monthly basis, still crucial gaps are there within your knowledge.

We prepare five personal questions.

And if you know the answers, then we are sure that you are good to go with your financial status. But if you don’t know the answers, now is the time for you to re evaluate yourself and know the answers.

#1, How much money you are going to save?

You need to check your account little close than monitor savings, but keeping an eye both is important.

If you have not done it yet, visit your local bank and see if they offer convenient services like online banking for you to track your funds easily.

#2, How much liabilities you have?

Mortgages, car loans, credit cards, medical debts, and student loans, if automatic payments are enabled on your account for fixed bills. You may not look your monthly financial statements, but you should.

It is way better to review your financial statements and verify balances for you to keep track of your balances. One more thing, make sure you pull your credit cards report regularly to ensure all your debts are well accounted for.

#3, What is my net value?

This is all your assets or everything you own, cash, home, automobile and anything that has value and you own. Your liabilities are obviously your debts, everything that you are going to pay.

To get your net value, you just subtract

total liabilities that you have from total assets.

When the result is negative, it means that you have a problem. But your net worth is used as figure that you can track easily.

Ideally, over a year you’re net worth increases, but if it decreases it may indicate that there are changes need to be taken action.

#4, What is my credit score?

The good thing about this score is you don’t need them until when you do, and when the time that organization will be looking at it, it is already late to improve your score.

The main idea here is for you to build reputable credit history and give them idea of what your present standing in financial matter.

But today, building your credit score is way easier, thanks to the creators of credit score reputable sites like “credit karma” and available financial institution that offers free score and monitoring program as freebies.

#5, My retirement funds, where is it?

Just like credit, retirement funds are what people tend to keep away from thinking until it is too late.

  • Do you have your retirement plan during work?
  • How much the plan worth?
  • How much deduction it will take during your paycheck and how much contribution your employer handles?

These are some of the questions that you need to answer, no matter what type of retirement it may be.


Leave a Reply