5 Simple Questions to Take Your Financial Pulse

How healthy are your finances?

We are half way through fourth quarter of 2019. This is a great time take a few minutes out of your day to review some important financial questions.  Rather than make things overly complicated simply answer the five questions below.  While this is not meant to be a comprehensive exercise,  If you are content with your answers you are way ahead of the game. I’ve posted more detailed articles for you to review should they interest you.

Answer these 5 simple questions:

1. What are my biggest goals that come with a price tag?

• We need to know what we want before we can build a plan to accomplish it. Write down those goals and attach a dollar amount to them.
• Create automatic savings programs to fund these goals.
• Did you remember to include your next vacation? Put it in your calendar and start saving for it.

2.   Am I comfortable with the amount of money set aside in a liquid account for emergencies or unexpected large bills?

• I find this gives more peace of mind than anything else.

Why Cash is Secret to Foundation of Financial Success

3.   Have I reviewed my investments in the past six months?

• Are your returns helping you reach your goals?
• How are they doing relative to their appropriate benchmark?
• Will you be ready for the next stock shock?

4. Am I on pace to be “mortgage free” when I want to stop working?

• It’s your biggest debt and monthly expense. Have a plan for it to be retired when you are.
• Consider matching your maturity date to your ideal retirement age, it’s possible to have many different loan year maturities. 

You don’t want to have a mortgage when you retire.

How Your Next Home Purchase Can Make or Break You

5.   Have you run your numbers to see if you are on pace to be financially independent (work optional) at the age you desire.

What it Will Take for You to be Financially Independent?

• This is best done with professional guidance. There are online calculators that you can mess around with, but the penalty if you screw up is your future. At least get a second opinion for something as important as this goal.

If you are content with your answers to these questions you are way ahead of the game.

Enjoy the year-end, be grateful for what you have and be sure to make the most of what you have.

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