There is no shame in wanting to live a financially stable life. Especially with the current economic trends, it is vital to have your finances in the right state.
To be financially awake means being cautious about how you spend your money. If you have a family, it can be more difficult to effectively manage what is at your disposal due to the many expenses you cannot evade.
To help you remain financially woke, here are a few questions you should ask yourself.
Do You Have a Goal?
A financial goal is vital as it can help you focus on the essentials. A financial goal is a milestone you set out to achieve, and this can vary with time, age, and current lifestyle. If you don’t have one, this can serve as a significant setback in achieving financial freedom.
There are different kinds of financial goals you can have. For instance, you can aim to build your own home, invest in your kids’ education, pay-off debt, or take a fabulous vacation. Having this in mind will help you remain financially awake as you plan how to achieve such goals.
Have You Advanced Your Financial Literacy?
Do you have the right financial skills to make informed decisions? If so, are they at par with the current economic trends? Lack of financial skills can hinder you from making better financial decisions for you and your family.
You can enrol in short online courses to gain and advance your financial literacy levels. Hiring a financial advisor is also a viable option. If not, you should consider using online financial apps.
Do You Supplement Your Income?
Supplementing your income is a great way to be financially awake. Simply put, it means having additional sources of revenue. But why would a person need to supplement their income? An extra income comes in handy when you lose your job.
You can also use it to cover emergency family expenses such as sickness if you don’t have health insurance. It is also a great way to fund your children’s education or cover other expenses.
There are multiple ways to supplement your income. If you have excellent knowledge in a specific niche, you can start online lessons. You can also freelance write or edit blogs. Besides, renting out your car when not in use can generate extra cash for household expenses.
Is Your Family On Board?
Do you continually educate your partner and children on the need for money management? Not having your family on board can be counterproductive to attaining financial security. Therefore, it is crucial that you also invest in your family’s financial literacy levels.
Let your family know why and how they should be cautious when it comes to spending money. You can start by having short term goals that everyone must achieve. For instance, you can tell your children to save for a given period, and the one with the highest savings will get a reward.
It would help if you also considered opening a family savings account where everyone will chip in what they have.
The above questions can help you know whether you are financially awake or not. Ensure you use them to help you manage your finances effectively.