ADVERTISEMENT
ADVERTISEMENT

If you're not asking yourself these 5 questions about money, you might already be screwed

As a certified financial planner, I've seen how hard it is find answers to your money questions. But it's not as hard as you think.

  • Money questions may be personal, but they tend to revolve around investing, debt, and real estate.
  • Setting yourself up for financial success means answering the easy money questions, as well as dealing with the harder ones.
  • We've outlined the 5 most important financial questions you need to be able to answer to make sure you're on the right track.

Everybody has money questions — but finding good financial advice is tough.

Only 40% of Americans have a financial adviser they can look to for guidance. Even those who do have their doubts about how trustworthy their adviser is. Most people — 60% — suspect financial advisers prioritize the company they work for over what is best for the client, according to a recent survey from the CFP Board.

As a certified financial planner, I've seen first hand how hard it is for people to figure out what to do with their money.

ADVERTISEMENT

It seems like it should be simple: pay off debt, save money, live happily ever after. But life gets in the way — the refrigerator breaks or an unexpected surgery is needed — and taking those setbacks in stride isn't easy. Especially when you don't have anyone to answer your money questions.

Most money questions tend to be very personal and specific. But, there are a handful of questions I hear over and over again, typically revolving around investing, debt, and real estate. And there are a couple questions I wish my clients would ask, but very few ever do.

Below, the five most important questions to ask about your money, as well as advice on how to find the answer to each.

This is probably the question I hear the most. Many people know they "should" invest, but sorting through piles of investing advice often leads to inaction and confusion rather than confidence.

Here's the short answer: Start now.

ADVERTISEMENT

Okay, but where? In a retirement account.

Investing through a retirement account means you save money on taxes, while making sure your financial future is more secure. Investing in a non-retirement account isn't a bad thing, but it should come after you've maxed out your retirement savings accounts.

Unless you are able to invest more than $24,000 a year, you should focus on investing through a retirement account. In 2018, you can save up to $18,500 in a 401(k) plan, and $5,500 in an IRA. If you're flush with cash, you can use both.

Deciding what to invest in doesn't have to be complicated. If you aren't sure where to start, choose a target date fund slated for the year you plan to retire. If you're 35 today, and want to retire at 67, choose a target date 2050 fund. That means the mutual fund will adjust over time to make sure your investments are appropriate for your age.

There's something about owing money that has the ability to overwhelm more so than any other financial topic.

ADVERTISEMENT

Using debt to pay for something that has value, like a home or a college degree, can help you get ahead. If we weren't able to become homeowners or graduate college until we saved enough money to pay for it with cash, the vast majority of us would never do either.

But debts that carry a high interest rate (typically over 8%) and weren't used to strategically help you afford a big purchase, are more problematic.

You don't need me to tell you that any amount of credit card debt is too much. Paying it off should be your top priority, and we have tips on how to get out of debt for good.

Cutting back on expenses will only get you so far.

At some point, you're going to need to make more money if you want to achieve all of your financial goals.

ADVERTISEMENT

Whenever I start working with a new client, I ask them when they last got a raise, and how happy they are with their current salary. I definitely have clients who are paid well, and who are very satisfied with their income. But the vast majority could use a boost.

Sometimes that means switching jobs, or even careers, but often it just means asking. Bosses are busy, and your raise isn't top of mind for anyone but you. Schedule a conversation to review your progress, and present your case for earning more.

Don't be afraid to ask for a raise, especially if it's been over a year or more since your last one. The worst they can do is say no. And if they do, be prepared to ask for concrete goals you need to hit to justify getting a raise. That way, next time you ask, you'll have even more evidence to prove your worth.

If you have a question about money that you've been afraid to ask, we want to hear from you. Please send us an email at yourmoney@businessinsider.com.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

Here are common things people rarely dream about

Here are common things people rarely dream about

5 young women who embody Y2K and alte fashion

5 young women who embody Y2K and alte fashion

ADVERTISEMENT
ADVERTISEMENT