Sometimes I get lost in the self-help section of the bookstore or library. Sometimes I think about “financial planning” a bit too much…
Before I head down that rabbit hole, perhaps I should have a handle on the basics. Of these 10 (I’m counting questions 2-11 here) from Derek at How I Do Money, I can answer 5 without looking anything up, can ballpark 3 more, and, yikes, have no answer for 2. How about you?
- What is 2 + 2? (That’s a warm up question.)
- How much money do you have?
- How much do you earn each month?
- How much debt do you have?
- How much money do you spend each month?
- How much do you spend each month on debt payments only?
- How much money are you saving each month?
- How much is in your emergency fund?
- What is your net worth?
- What’s your plan?
- Bonus question to make up for question #1: How many months until you are debt free?
Derek, wisely, suggests getting a handle on the basics before trying to do the complicated. I think all my time spent on the non-basics is simply hoping that there is a magical solution out there so that I don’t have to work to figure out the answers to those last two questions that I can’t answer right now.
Resources and Links
- Can you answer the ten easiest money questions ever? from howidomoney.com
- LifeHacker’s Get Your Financial Life In Order By Answering These 10 Questions article based on the Derek’s questions
- LifeHackers’s Personal Finance articles