14 Essential Financial Questions Every Savvy Woman Should Consider
As a smart and savvy woman, you are probably very capable of managing your personal finances. While you may be on a good track when it comes to money, you want to make sure you get the most out of every dollar. Ask yourself these 14 important financial questions and see what you discover. Answering these questions will hopefully lead you to even more financial freedom and give you more monetary power. Once you are able to tackle these questions, you will be ready to take on the entire financial world!
Note: The content of this article is for informational purposes only and is not a substitute for professional advice. Always consult with a qualified professional for advice tailored to your individual circumstances.
Do I Have a Budget?
Every woman needs a budget. You should have a weekly, monthly, and annual budget that you review and tweak frequently. A budget is essential to making sure your finances are on track and preventing overspending. Your budget should help you live within your means while still being able to make the purchases you need and want.
Am I Saving for Retirement?
Even if you are decades away from retiring, any woman with a job should be saving money for this latter part of life. If you want to retire comfortably, you need to be saving throughout your entire career. Even putting away a little bit each month will eventually add up! Consider putting money into a savings account like an IRA or contributing to a 401k plan. Just a traditional savings account will work, too!
Do I Have an Emergency Fund in Place?
Hopefully, you never have an emergency that costs a lot of money. However, you never know when you may suddenly need extra cash. Having an emergency fund is necessary, as it will give you peace of mind and ensure that you are prepared for the worst. Set aside money anytime you can to save for when disaster strikes. Smart, financially savvy women are always prepared!
How Much Debt Do I Have?
It is not always a bad thing to have debt. You may have a mortgage or student loans that are necessary to build the life you want. What is important is that you manage that debt correctly. Always know how much debt you have and how you intend to pay it off. Focus on high-interest debt first, and always try to pay more than your minimum payment. This will help you chip away at your debt in an organized, smart way.
What is My Credit Score?
Your credit score is extremely important as it proves your financial reliability to lenders. Keeping a high credit score will allow you to get loans when needed and allow you to make big purchases, like a home or a car. If your credit score is struggling, you should also learn how to increase it. Having a plan to build your credit is essential for all women in every part of the country.
Do I Have a Will?
Having a will or Estate plan set up is essential for women of any age. You should always have a plan for your assets after you pass away. It will ensure that your assets are divided the way you want and that your loved ones are taken care of after you’re gone. It also helps avoid legal complications and potential disputes among family members. That is not something you would ever want!
Can I Negotiate?
Knowing how to negotiate is a powerful and essential tool every woman should have. You should be able to negotiate at work to get yourself a raise or talk to a salesperson to get a price lowered to where you think it should be. You don’t need to argue to negotiate, but you do need to be able to assess value and worth. Every woman should be able to speak up and bargain for the things they want! You will never get that raise or promotion if you do not master this financial skill.
What Are My Short-Term Goals?
Do you have some short-term financial goals in place? You probably should! Think about what attainable goals you can reach in the near future. Do you want to take a vacation, buy a car, or start looking for a new apartment? Put a plan in place to achieve these goals, and you will be on track to reach them in no time! You should always be working towards something.
Am I Living Within My Means?
If you end every month with less cash in your bank account, something is wrong. You should always be spending less than you make. If you find yourself overspending, it means that you are not living within your means, and something needs to change. It is not sustainable to live like that, and you will go further into debt if you do not make changes. Reassess your budget and focus on living within your means.
Do I Have The Right Insurance?
Insurance can be very complicated, but it is still something every woman should understand. You want you and your family to have the right type of coverage if they ever need it. Take a look at your health insurance plan, your life insurance, and even your car insurance. Make sure you understand your coverage and that you have enough insurance to cover your needs.
Do I Understand My Investments?
If you have invested money into stocks, bonds, or just into your company’s 401k, you are doing a fantastic job! However, making the initial investment is just the first piece of the puzzle. You also need to make sure you understand your investments and that you are able to track them, making decisions as the markets change. While most of your investments are likely passive and do not require day-to-day maintenance, you should still know how your money is doing at all times.
Am I Taking Advantage of My Employer’s Benefits?
Most employers offer benefits to their workers that you should always take advantage of. Benefits are part of your employment package, and you want to use those benefits you have worked so hard to get! Take a look at your company’s 401k plan and see if your employer matches your contributions. See what health insurance they offer and if you get discounts on certain plans. Always take advantage of any vacation days your employer may offer!
What is My Net Worth?
Your net worth is not just the number in your bank account. You can calculate your net worth by adding up the value of your assets and subtracting all of your debts. For example, add up the value of your home, your car, and your bank balance. Then, subtract any credit card debt, student loans or mortgages you currently have. The number is your net worth! It is always good to have a positive net worth or work toward getting that number out of the negatives. Pay off your debts, keep on saving, and soon your net worth will grow!
Do I Save More Than I Spend?
It can be hard to save money every single month, but it is an essential part of life. You should always save a little bit at least, and ideally, you should save more than you spend. If you have extra money after paying all of your bills, always save the majority of that excess and only spend a little bit. When you see your bank account growing, you will be glad you did!
