Over the coming days we will be discussing how to build up an accurate picture of your current financial position by looking at your income and expenditure, balance sheet and asset weighting. Before that though, let’s start with a few general questions you can ask yourself to get a sense of where you are today and how you feel about it. Try to answer on a scale of 1 to 5 with 1 being terrible and 5 being outstanding:
- How would you rate your current income?
- How would you rate your net worth?
- If you have any, how do you feel about your current investments?
- How would you rate your current cost of living?
- How would you rate your level of monthly saving?
How did you score out of 25? Anything over 20 and you’re in a pretty good place. 15-20 indicates relative comfort, but with room for improvement. Less than 10 and you might need some cheering up! Regardless of your score, did you learn something from answering these questions? What areas do you need to focus on to improve your current position?