Are you financially secured if you save more than 50% of your income? Have you ever considered what being financially secured means? You might always be busy saving your income and looking for more ways to grow your capital, but have you ever wondered how secured you are financially? The easiest way to check is to use a personal finance checklist!
Using A Personal Finance Checklist To Help You
Being secure financially is more than just simply saving your take home pay, it’s also making sure that you pay your debts, don’t have any late bills (because of the extra charges) and have an emergency fund that will help you get by in times of need. There are many different kinds of personal finance checklist online and this is one that I came up with.
Use this Personal Finance Checklist to see how secure you are! Add the ticks from the bonus section as well!
- If you have 0 – 2 ticks: Not bad but let’s take a look at the list and find the easiest thing you can do right now to get another tick!
- If you have 3 – 4 ticks: Great start! Now you want to try and make sure you are well covered in all areas.
- If you have 5 – 6 ticks: Awesome! Keep doing what you do!
- If you have 7 or more ticks: Safe & secured! Early retirement is on your way!
I. Keep track of your monthly expenses: This is important because this allows you to check and make sure your spending is within your budget.
II. Pay your bills on time: When you pay your bills on time, you don’t incur any late payments and unnecessary fees.
III. Have an emergency fund: Having a fund that can cover 6 month expenses will ensure you are well covered financially in case any unforeseen circumstances happen.
IV. Beating inflation: By growing your money at the same rate as inflation, this means your spending power will not erode. If you grow at a higher pace, the power of compounding will grow your money in the long run.
V. Personal insurance: When you adequate insurance coverage (government, personal or employer) you will not have to worry if any huge medical bill comes your way.
VI. Debts and loans: If you can, start paying off your debts and loans quickly. Debts and loans incur interest rates. Always pay those with the highest interest rates first (Credit card bills)
VII. Multiple sources of income: More sources of income means you are less likely to be affected if one income source stops.
VIII. Frugal lifestyle: When you save more than you spend each month, you will reach Financial Freedom quicker.
How Well Did You Score?
Dear readers, as always thanks for reading! Let me know in the comments, how did you find this personal finance checklist? How many ticks do you have? How do you intend to improve your score? Do you have any suggestions on what could be included in the personal finance checklist?