Financial decisions are some of the most important in your life. They can be stressful and daunting, but must be faced in order to ensure a happy, manageable lifestyle. These four financial questions are of the most crucial.
Is my house too big?
Many people often buy houses without considering maintenance costs. Things fall apart over time. Roofs need to be fixed or replaced. Walls need regular paint jobs. Dust mites show up everywhere if the house is not cleaned. People with large houses need larger budgets for maintenance costs, and they simply need to buy more supplies for each task. These costs can become a burden for people with modest incomes. Therefore, homebuyers should resist the temptation of acquiring unnecessary square footage. They should consider downsizing if the maintenance costs become too stressful.
Is retirement possible?
Working adults must save money for retirement and create a viable plan. It is unwise to procrastinate when drafting this plan as there may not be much time left. There are many risks in life. One primary risk is a complete loss of income. People cannot retire if they do not have any money to sit back on. How will they support themselves? They might also be unable to work because of medical conditions that come with old age. Workers with no retirement savings are in a bad situation if something goes wrong. Therefore, creating a retirement plan and following through is crucial.
Is this purchase necessary?
American society can be extremely materialistic. People make impulse purchases without a second thought. They max out their credit cards to buy luxury watches. Some people even finance vacations using home equity loans. All these decisions can wreak havoc on people’s financial well-being. Therefore, people need to live below their means. Stop and pause for a few minutes before buying something. Distinguish between necessities and superfluities.
What happens financially when someone passes away?
People must think about the financial ramifications of death, as hard as it may be. Would their families be okay? Does the family have enough money to pay for a funeral? Is the will written by an experienced lawyer? Is there life insurance available? Thinking about these things now will prevent financial hardships later. People should make the grieving process as easy as possible for their loved ones. They should get their affairs in order even if it is not a pleasant experience.
By answering these questions, people can hone their financial management skills and lessen stress throughout their daily lives.