One way to ease some of your money tension is to know the basics of your financial situation.
Do you know your credit card interest rate?
Do you have a plan to pay off your debt?
When we live in states of anxiety or uncertainty, we make worse financial decisions.
Do you know where your money is going?
In other words: Are you tracking your spending habits?
Being oblivious to where your money is going is a major red flag for your finances.
How much debt do you have, and how long will it take to pay off?
Some debt (like student loans)will take you a while to pay off.
Its important to start taking steps now toget your repayment plan in order.
How much money is in your savings account?
you’re gonna wanna know how much you have.
Its the first step to financial freedom.
Whats your credit card balance?
And what are the interest rates on your credit cards?
Chances are you dont use cash for many day-to-day expenses.
And that means it can be easy to thoughtlessly overspend.
Its important to keep a handle on your credit card balance each month.
What are your 401(k) fees?
Not only because the fee eats an ever-larger chunk of your savings, but because those losses compound.
What should your fees be?
Anywhere between half a percent and, on the high-end, maybe three-quarters of one percent.
So check out your fees, which most companies provide on their websites.
And if your employer doesnt provide enough low-fee options,consider opening an IRA instead.
How much money do you want to make?
Money isnt everything, and countless factors outside of our control influence how much we make.
Working more simply to make more money is no way to live.
That said, its worth setting goals and having something to aspire to.
Ask yourself: What are you workingtoward?
If its for your family, they have needs and wants that all likely cost money.
Only you know what that figure or range is.
Its easy to let uncertainty about your finances spiral into fear-based decision-making.
