5 Financial Questions To Ask Yourself Right Now

With a roller coaster economy, high job unemployment, and increasing federal debt, this is the time to take stock and ask yourself some important financial questions to make sure you keep your financial house in order.  Here are 5 important questions to ask yourself now?

  1. Do I have an exit strategy with my investments? If the stock market has another free fall or your company stock takes a dive, how will you put some sort of cushion to secure those assets which have grown over the past year?  You should be asking yourself questions such as how far your money may go down before you exit the stock market, or how much it needs to make before you might take some profit off the table.  Learn from the ups and downs you saw in the early 2000’s and in 2007/2008.
  2. Do I have enough of a cash reserve? With job market uncertainty, you want to make sure you beef up your cash reserve for at least three months more than you would normally have.  If you are used to having 3 months in a cash reserve, than I would recommend doubling it to 6 months to be more safe.
  3. Do I have a spending plan or budget in place? If your income begins to expand again over the next couple of years, I think it is critical that you keep your spending plan in check.  Make sure to save at least 10% of your income, with the real target being 20% of your total income.    By really examining your budget now, you can determine your wants versus your needs.   It is certainly a good idea to reward yourself from time to time, but staying away from any unnecessary major purchases that are not in your budget will be a key to building wealth during the next up economic cycle.
  4. Are my insurance coverage’s in place? Even though the health care bill passed recently, it is important to review your insurance coverage’s from what you have at work to the personal insurance you currently carry.   If you lose your job or decide to leave, many coverage’s such as disability insurance go unnoticed until it is too late.
  5. Are my beneficiary designations up to date? With many people entering into second and third marriages with both spouses perhaps having kids from prior marriages, it is important to make sure you review your beneficiary designations.   I often find that people don’t review these until it is too late.

As more and more people get their financial homes in order, asking yourself these five questions can help you run your family finances like a business.

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Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc.

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oXYGen Financial, Inc. co-CEO Ted Jenkin  is one of the foremost knowledgeable professionals in giving financial advice to the X and Y Generation.  Unless sources are noted, the information is the opinion of the author.

TED JENKIN IS SECURITIES LICENSED THROUGH INVESTACORP, INC. A REGISTERED BROKER/DEALER MEMBER FINRA, SIPC.  ADVISORY SERVICES OFFERED THROUGH INVESTACORP ADVISORY SERVICES, INC. A SEC REGISTERED INVESTMENT ADVISORY FIRM. Linked sites are strictly provided as a courtesy. Investacorp, Inc., and its affiliates, do not guarantee, approve nor endorse the information or products available at these sites nor do links indicate any association with or endorsement of the linked sites by Investacorp, Inc. and its affiliates.

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin has spent the past 23 years giving personal financial advice to thousands of people across the United States. After graduating from Boston College in 1991, Ted spent more than 16 years working for American Express Financial Advisors/Ameriprise Financial. He was one of the youngest people in the history of the company to reach both Field Vice President and Group Vice President level. He managed more than 800 financial advisors throughout 8 states in his last position with the company. In 2008, Ted founded oXYGen Financial to help revolutionize the financial services industry by creating a new company that focused on serving the X and Y Generation. oXYGen Financial now has more than 2,200 clients throughout 25 states across the country many coming from social media techniques. Ted has been featured in over 30 magazines and newspapers including the Wall Street Journal, Business Week, and The Huffington Post. He was on the cover of Registered Rep magazine and featured in the ‘what will financial planning look like in 2023’ article done by Financial Planning Magazine. He has six advanced designations from the College for Financial Planning (CFP®, CRPC®, CRPS®, AWMA®, AAMS®, CMFC®) and is an on air radio personality.

2 Comments

  • April 15, 2010

    Great article! You’ve laid out some really key concepts to consider when attempting to remain proactive in one’s finances. This is my first time here, but I love the site, layout and information! Thanks for sharing. Bookmarked! :)

  • April 23, 2010

    You pointed it right! Definitely a good and important question to consider. In this economy right now, we don’t know what happens next, so it is important to have a financial security for ourselves & family.

    - MJ Smith
    Reward Credit Card

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