Thursday, December 17, 2009

What's Your Financial Peace?

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.

6 comments:

Kansas Bob said...

I did all of that stuff and I have to admit that I wish that I did not live life so ultra-conservatively. My paid-off home is okay but enjoying some of the things you go in debt over are not all that bad either. I think that there is a balance.. live life while you can.. no one is promised tomorrow.

jrchaard said...

You should live life, yes, but if you are doing it through debt, how will that sit with God. If you take a bunch of debt and then die, then the companies are left trying to get what you entered into an agreement in good faith for. Then we all call them evil for trying to get what is owed to them. My feeling is that God would want me to live within my means, with no debt.

Kansas Bob said...

Sounds like that person didn't have enough life insurance to pay his creditors :)

I am not saying to take on a lot of debt.. just saying that sometimes "I will never owe anyone anything" can be a vow that may one day paint one in a corner.

And the paid off mortgage is not a status symbol no matter what Dave says because people don't go around bragging about it.. oh wait.. lol.. I guess Dave does.

jrchaard said...

If I get to that point, you might have to endure a couple of blog posts about it. BTW, I had my 2 year blog birthday on 12/9

Kansas Bob said...

Careful.. you know what the bible says about bragging :)

Congrats on 2.. look forward to 20 more.

Anonymous said...

christian louboutin christian louboutin shoes christian louboutin discount handbags MBT Shoes designer handbags louis vuitton handbags gucci handbags discount handbags replica handbags Herve Leger ugg classic tall UGG Classic Short UGG Ultra Tall christian louboutin boots discount MBT Shoes UGG Classic Cardy cheap MBT shoes cheap christian louboutin louboutin shoes ugg boots chanel womens shoes Louis Vuitton shoes christian louboutin pumps christian louboutin wedding shoes christian louboutin slingback pumps Tory Burch Shoes louboutin sale christian shoes louboutin shoes tory burch reva tory burch reva ballet flats tory burch ballet flats tory burch ballet shoes