10 Financial Questions to Ask Yourself Every YearSubmitted by BCR Wealth Strategies on January 27th, 2020
Maybe over the Christmas holidays. Perhaps every year on your birthday. Whatever time of the year you choose, take some time to assess your financial situation, annually.
- Is my credit score where it needs to be?
What can you do to improve it? Set a goal to pay down your credit card balances. Don’t apply for new credit.
- What’s my net worth?
Formulate a plan so in the next year you see an increase in your net worth. If not, know why.
- Where can I save money in my budget?
Check your utility bills, unused subscriptions, and eating out. Look for ways to save money without impacting your lifestyle too dramatically.
- Do I have enough set aside for an emergency?
What counts as an emergency depends on your situation. The general guideline is 6 months for a single person or a married couple where one income is significantly higher than the other. 3 months for a married couple.
- Are my insurance policies and estate documents in order?
Beneficiaries up to date. Update estate documents. Sufficient (but not too much) insurance coverage for your home, auto, health, life and disability.
- Am I happy in my career?
If not, can I afford to change jobs? Evaluate your budget. How much do you need to make to afford the lifestyle you want?
Looking Toward the Future
- Is my retirement savings plan on track?
Are you saving as much as you should be? Are you maximizing your employer match?
- What are my financial goals for the next year?
Pay off a debt. Increase retirement contributions by 2%. Start a side hustle!
- Am I on track to eliminate my debt?
Are you following the plan you made? Are credit card balances lower than they were? Decide what to tackle next.
- What financial opportunities or challenges could I face this year?
Ask for a raise. Buy a house. Expenses for a move. Is your contract job complete?
Take some time to consider your finances every year. Spend at least as much time as you do to plan your vacation. Well-funded lifestyles don’t happen by accident. Make the choice to live well.