With the stock market swinging like a pendulum, with job markets cold and the California fires raging hot, it seems like a good idea to take stock of one’s personal finances.
How much cash do you have liquid? By liquid, I mean how much cash can you get to within 3-5 business days if you need to? You don’t need to answer me, just be aware of how much and how fast you can get to your money.
How secure are your existing investments? If you have been able to gut out the changes in the markets for the last few weeks you should be able to make a decent assessment of your investments.
How is your debt? If you have a lot of credit card debt or mortgage debt, what steps are you taking to reduce it? It is tough to make money when you have money just going out. With debt hanging over your head, you want to do what you can to get rid of your burden.
Are you paying enough or saving enough for Federal and if appropriate state taxes? If you had to dip into your 401K please save about a third of the money for taxes. If you are in a situation where you need the money to eat and live, do what you need to do but be aware that you will have to deal with the tax situation eventually and the end of 2008 is right around the corner.
Are you able to save at least 10% of your weekly money for emergency savings? If not, do what you can to save what you can.
Is there anything you can cut or trim down from your budget to save money?
It is the weekend so I won’t bring up anything else except a reminder that Sundays are a great day to review your finances once you are relaxed and things are calm around you.
Be safe and healthy!
Kim Isaac Greenblatt
Kim Greenblatt askes if you are reviewing your personal finances.