With all of the chaos of life going on around you, have you ever stopped to gauge your financial situation, your financial peace. Here are a couple of questions you should ask yourself this holiday season.
1. Do you have $1,000 set aside for emergencies only. Not to be confused with your checking account?
a. What would happen if you had a $700.00 car repair, would you be able to only have a car crisis and not a financial crisis as well.
b. What if your furnace breaks and you need $650 to pay the repair man.
2. Do you have any non-mortgage debt?
a. If you have accomplished task 1 see b through e below
b. Do you make minimum payments only
c. What is your plan to get rid of the debt
d. Do you like to have the chains of debt weigh down your family’s financial peace.
e. What happens if you lose your job, will you be worried about paying mastercard before feeding your kids?
3. Do you have a 3-6 month Emergency fund?
a. If you have accomplished tasks 1 & 2, see b through d below
b. What happens if you lose your job, will you be forced to make bad career decisions because of the financial urgency?
c. What if you crash your car, can you cover the deductible?
d. What if you need a surgery or some sort of non covered health crisis?
4. Are you investing 15% of your income into Roth IRA’s?
a. If you have accomplished tasks 1 – 3, see b through c below
b. Are you counting on Social Security?
c. Are you really serious about counting on Social Security for when you retire?
5. Do you have children that you want to go to college?
a. If you have accomplished tasks 1-3, see b through c
b. Where have you parked your kids college fund?
c. Will your funding choice limit your child’s options to only a University?
6. Do you have a Mortgage?
a. If you have accomplished tasks 1-5,
b. Do you want to have no debt by attaining the new status symbol of our generation, a paid off home.
c. Have you thought about the career freedom afforded you if you had no payments of any kind.
7. Give, give, give.