The money talk can be such a cringey topic—but it doesn’t have to be. You can rewire your brain and the way you think about money by simply educating yourself and asking yourself questions that guide you towards positive thinking.
Sure, we all love spending money, and if we could have an unlimited supply of it without any strings attached—we most definitely would, but saving and responsibly managing your money is just as important. Trying to find that healthy balance between saving and spending is something many of us struggle with (you’re not alone sis) when asking ourselves money management questions.
We’re setting you up with eight money questions you should be asking yourself to not only save and manage, but to be able to cultivate the life you deserve to live. So get ready to get to the nitty gritty with these serious money saving questions!
8 Money Management Questions You Should be Asking Yourself
1. How much debt am I taking into the new year?
This is a money management question many of us fail to acknowledge. Take some time to tally up what you may have left to pay—whether that’s student loans, mortgage loans, or auto loans, anything that is outstanding should be taken into account.
From there, take a long look at that number and tell yourself you will make this number a key part of your action plan for the upcoming year. Act on it, and make sure you’re reminded of its importance to your finances.
2. How much money did I save last year?
This should be easy to calculate—especially if you have an automated savings account. Take a look at your savings account and consider how much you saved within the last year. Acknowledge it, be proud and then continue to add to that.
3. What does my savings plan for this year look like?
For the years to come, in order to create a savings plan that works for you and your finances, begin by setting financial goals. Things such as saving for a down payment on a new home, paying off certain loans and debt, or figuring out a savings goal—whatever it may be, set strategies in place and hold yourself accountable.
4. How much money is in my emergency fund?
Life can be so unpredictable and literally comes at us all extremely fast. You don’t know what each day holds, so you should always be as prepared as you can possibly be. With that being said, it’s important that you first have an emergency fund set in place and second have enough money in that fund to take care of whatever emergency you may be met with.
5. What are some poor money management habits I can get rid of?
Think about the areas in your life where you know you should be saving. If you’re someone that is living beyond their means—it’s time to let that lifestyle go. Cut back on things such as eating out or buying new clothes, shoes and handbags. Instead, opt for decisions that contribute to you reaching your savings goals and managing your money better.
6. What would happen to me if my spouse passed away suddenly or became unable to produce income?
This is a money management question that some of us truly aren’t prepared for. Because scenarios like this don’t seem to happen to us every day, often times we don’t see it as a money question we should be asking ourselves. However, it’s important to ask yourself this, and to make sure you have a plan set into place in case your family had to survive off of one income for an extended period of time.
7. What would happen to me if I were to lose my job tomorrow, and couldn’t become employed right away?
Do you have a backup plan for reemployment? Are you an attractive and eye-catching hire? Those are two questions you will need to be ready to answer if you’re ever faced with this situation. What will you and your family do for income if you are no longer bringing in a consistent one? Making sure you have a plan set in place is extremely vital (i.e. emergency fund).
8. What was the last money mistake I made, and why did I make it?
Let’s face it, many of us have a hard time admitting our faults. When we’ve made a mistake, sometimes it can be a bit hard to accept it. Often times, money mistakes occur when you’ve spent in some way that you know you probably shouldn’t have. However, this is where you stop and ask yourself, what can I do to prevent this mistake from occurring again? #MakingSMARTMoneyMovesAll2020
When was the last time you assessed your budget and asked yourself these money management questions? Take some time now to do just that!