Get Real: 3 Tough Financial Questions To Ask Yourself

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Money can be such a sensitive topic to discuss openly about – even with yourself. However, to be aware of your financial situation is the first step to getting closer to your financial goals.

On that note, here are some financial questions you simply need to ask yourself (not matter how tough or embarrassing they may be).

Am I Spending Too Much?
In a cashless world, shopping is just a simple click, tap, or swipe away – making it easier to lose track of your expenses. Coupled with great advertising, you may be spending more than you can afford and turning a blind eye to your real expense check. Always start the new month with the 50:20:30 rule when it comes to your income to ensure that you’ll always have enough (and more).

Meanwhile, expense tracker apps are a great way to monitor where all your money goes daily. Nothing like a notification that constantly shows you how much is left in the bank for a reality check. 

What Are The Small Conveniences That Make A Huge Difference?
Whether it’s $7 lattes or $10 rides – these small expenses add up. Swapping your meals out for home cooked dinners might not be as appealing initially, but seeing the dollars add up in your account might do the trick. Other things that you could save on include taxi rides, food deliveries, subscriptions, and flash sales. 

Can I Afford Life Insurance? 
A good rule of thumb when it comes to life insurance is coverage that’s 10 t0 15 times of your income. However, some financial circumstances that you’d need to consider would include:

  • What financial obligations do you need to cover (ie. expenses, debts, liabilities, dependents etc)
  • Lifestyle And Personal Considerations (ie. age, health, affordability)

A common mistake that some policy holders make is rushing into a life insurance plan without considering the above factors. For instance, if you’re living paycheck to paycheck – it’s better to start off with saving up for an emergency fund (worth 3-6 months of your income), rather than diving straight into an insurance plan. 

Workshop Title - Financial Learning Session 1 Take action today!

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Written by

Cheryl Toh

Last updated on

April 1st 2020, 6:18 pm

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