I am not sure how many people with out a personal finance blog actually know how they are doing with their personal finances. I can’t imagine that many people actually take account of their net worth or even how much debt they actually have. At most, maybe, someone will know their 401(k) balance. Notwithstanding, there area number of items that every adult who is in charge of their household’s finances should know.
Please note – When in need of a loan, one can always leverage the equity of their home. It is important to become familiarized with Home Equity Loan Rates.”
What Every Responsible Adult Should Know About their Personal Finances
I am sure the list is not complete so if you have any ideas I’d love to hear them:
- How Much Credit Card Debt Do You Have?
- What is your Mortgage(et. al.) and/or Rent Payment?
- What are the terms of your mortgage?
- Does your company offer a 401(k) Match?
- Are you taking advantage of your 401(k) Match?
- How much are you saving per month?
- Are you paying/overpaying for home owner’s insurance and/or Auto Insurance?
- What is your risk tolerance?
- Is your asset allocation in line with that tolerance?
- Do you have a will? If not do you understand what happens without a will?
I would say this is a top ten list, but would love to hear other ones.