Finances make up a large portion of our lives. Our financial situation often influences what car we drive, the house we live in, and what we’re able to do on a day-to-day basis. As a result, we should continuously keep track of our financial situations to ensure we can live comfortably and not face any financial or even legal difficulties. To see if you are financially healthy, ask yourself these questions.
Do I Have Access to Funds?
The big-ticket question when it comes to finances is whether you have access to funds when you need them, including during emergencies. Do you have some money saved up that could cover you for a few months? If you don’t, you can look into options of how you would be able to get a lump sum of cash if needed. For instance, you can consider selling a life insurance policy through a life settlement. A third party buys your settlement, and you get cash up front. Of course, there’s a lot to consider with this option, so you should research your life insurance options beforehand.
Am I Contributing Towards My Retirement?
Many people don’t start to think about their retirement until their 40’s or 50’s. However, getting started as soon as possible can mean a much more financially happy retirement down the road. Starting in your 20’s or 30’s gives you several decades to not only save but invest money in stocks that can greatly increase your total amount. You can look into retirement savings on your own or work with your bank or a financial advisor to get assistance.
How Can I Improve My Financial Understanding?
Speaking of financial planners, there’s no better way to improve your financial literary than by working with one. A financial planner will look over your entire financial situation and tell you exactly what you should or should not be doing every month to contribute to both your present situation and future self. You can get help setting up a budget, signing up for an IRA, or working towards a retirement goal.
What Can I Do to Increase My Income?
If you’d like to increase your income for further financial stability or just an improvement in lifestyle, you have several options. You can either negotiate a raise at work, consider switching jobs or even careers or look into ways to make money online, or taking on a side hustle. In fact, more people than ever before are deciding to use their additional skills and free time to make more money. You can consider freelance artistic work online or take on driving or food delivery services.
Am I Spending Money on Things That Truly Matter?
Lastly, think about what you buy. Do you tend to buy things on an impulse? If so, think about how what you buy can affect your future. Could the money you have spent have been better spent on something else? Perhaps a savings or retirement payment? Consider this question before every purchase and watch your financial situation greatly improve.
