In my quest for improvement in my career and business; I have discovered the power of questioning. The Questions you are asking yourself determines how far you want to travel on the journey of life. This applies to all areas of your life; Career, Business, Relationship, Health, Spiritual etc. When you ask empowering questions in any particular area of your life it unlocks your potentials, creativity, innovation etc.
Hence in the Winning with money series; I would like to share with you 5 empowering personal finance questions you do should to ask yourself if you desire to achieve financial independence, confidence and freedom.
Answering these questions may lead to new discoveries and enable you to make or review your money or personal finance decisions with the aim of achieving any financial set goals you have made. Answering these questions could open your eyes to know what you need to do to improve your financial life to achieve confidence, independence and freedom.
For you to have a healthy financial life, your net worth should be in the POSITIVE i.e. What you owe is less than what you own must be positive. If you find this skewed in the opposite direction; then it might be because of loans and credit card debt. (If you have watched my video 3 Never to Do with Money).The use of debt to fund your lifestyle should not be encouraged so STOP. If the answer to this question is yes; the first step to do is to decide to eliminate the loans/credit to at least achieve a break even position in your net worth.
Does the word “BUDGET” send shivers to your body? If it does; you are not the only one. There is a myth on budget that it is technical term that requires some technical knowledge own to be able to have one. It is not truth. Budget is simply giving your money (every penny) an assignment. It is a managing or control tool. You simply prepare a plan for the week/month/quarter/year as you are most comfortable with, of how you spend your money. Assign every penny you earn.
Are you investing? If you are not investing then, how are you multiplying your money? Answering this question will make you to realise that you need to start or continue investing to attain financial success. You can determine and afford the lifestyle you desire just by earning the income to support it.
That is one question that you need to take care of as early as possible in your working life. Planning for retirement is usually left to the end of many people’s work life. At this time it is challenging and the effort required would be doubled that which would have been put in if it was earlier on in your working life. Waiting till later puts so much pressure on you that may ultimately impact on your health or enthusiasm to life.
Everybody should have an emergency fund. This is an ingredient in the recipe for financial success. This is a fund set aside for the rainy day, when the unplanned or unforeseen happens and this requires spending eg when that car develops a major fault that you did not have a warning or someone in the family falls sick or dies and a funeral spending has to take place. The emergency happens to all. It is not IF but WHEN it’s going to happen. So when it happens, what do you? Who do you go to for the needed fund? Bank (for loan), Credit Card Company or family and friends that are planning their finances (hence have extra to lend you). The ancient book says the “The Borrower is the slave to the Lender”