Financial Questions You Need to Ask Yourself Every Year

• Author: William Asher
• Posted: 2024-08-04

Every year, people try to make new year resolutions about goals and plans to accomplish. It would be best if you also made money resolutions for the new year. Ask yourself questions that will improve your financial portfolio. A personal finance portfolio helps you manage your funds to secure your future and foster healthy spending habits.

Financial Questions to Ask

For you to develop good discipline when handling your money, you need a strategy. Some questions help you keep track of your money and make you decide on better ways to utilize your hard-earned cash. Below are a few financial questions you should ask annually.

What is My Priority Financial Goal

As the year starts, make one or two financial goals that you intend to fulfill. Avoid making too many goals because they may not be achieved at the end of the year, causing undue frustrations. After stating your goals, make a plan on how you intend to turn them into reality.

Formulate a project that helps you monitor your plan step by step. Remain focused throughout the year to achieve your short-term goals. Making a big purchase such as buying a house or paying for your wedding are examples of financial goals you can achieve within a year.

What Do I Value the Most

The question directly affects your budget. Some years begin with different expenditure requirements than the previous year. For instance, your kid's school fees may increase, or you may need a medication budget for unexpected illnesses. Your family's financial needs may shift, and you have to prioritize your spending.

Make a list of all the expenses around the house, then allocate funds accordingly. There are items that the family can survive without, while others are needed for survival. Additionally, you can find ways to reduce spending by buying things with discounts or on sale. Coupons, too, can save you money when grocery shopping.

Is It Possible to Save More

You can visit your bank to confirm the percentage that goes into your savings account. There is no dictated amount that anyone should save. Therefore, you can decide the amount you want to cut from your paycheck. Similarly, the amount you save depends on your saving goals, such as retirement or an emergency fund.

To increase the amount of money you can save, cut down on some expenses. You can stop spending money on stuff you can live without, such as paid memberships and a luxury lifestyle. Cut down on any luxurious activity by doing it less and putting extra money into the savings account.

How Am I Financially Protecting My Family

One way you can protect your family financially is by paying for life insurance. Education insurance allows your children to attend school long after you are unable to pay school fees. There are affordable coverages that you can get for your family. Health insurance also reduces the out-of-pocket expenses you incur when an illness attacks a family member.

To understand the appropriate amount to have in your life insurance, you can consult a financial expert to help you make the right decision. There is also an online life insurance calculator to help you with the same. Getting any insurance coverage is a great way to protect yourself and your family financially.

How Do I Make More Money

The recent pandemic has made people turn to home businesses due to numerous industries shutting down. You can increase your income by turning your hobbies into money-making activities as well. Supplement your paycheck with a side hustle that may prompt you to an exciting career change over time.

Invest some of your money to have profitable returns. Moreover, you could ask for a promotion at your workplace if you are up to the task. Most promotions come with a handsome pay bump that will help you make more money monthly or weekly. Look for creative legal ways to make more money to improve your portfolio career.

Does My Investment Plan Meet My Goals

Evaluate your investment strategy to assess if it suits your current or long-term needs. You can start by assessing the risk tolerance of your investments and adjacent where appropriate. According to stock market news, you can buy or sell shares to meet maximum profits.

Consult an entrepreneur on the best strategy to handle your investment plans. Always make sure your credit score is good before getting into any form of investment. You cannot make money without having money first.