1. What is your relationship with money?

Having a healthy relationship with your money means understanding how money works. It means using your money to help you maintain good health, live a life with less stress, and invest in things that will support you long term. A positive relationship is what leads to financial freedom and wellness. However, if you are worried about money, that is a clear sign that it’s time to seek help through free online resources, your bank, or a financial advisor. 

My interpretation of this is that asking yourself about why you have a good or bad relationship with money. Where did this start? How can I change this? You are in control of your money and how you earn it, save it, and spend it.

2. Do I have an emergency/sinking funds in case something happens like losing a job?

Experts recommend that you should have enough money saved to cover 3–6 months of expenses in case of an emergency, such as an illness or losing a job. I think you should have 6-9 months of money saved just in case. This may take you longer to accomplish but you can rest easier knowing your money is there. The reality is most people do not have such funds set aside just for emergencies. Many more don’t have any savings at all. If that’s the case, you should consider ways in which you can start saving, even if it’s a small amount every month. Some ideas would be to automatically save with direct deposit, start small like $5 per paycheck, then increase after a few months.

3. Are You Prioritizing Spending on Essentials, Such as Food and Healthcare, Rather Than Entertainment and Other Nonessentials?

You should take a look at exactly where your money is going and what categories you are spending the most on. Ideally, you will be spending more on needs than wants. If you follow the 50/30/20 rule, for example, 50% of your income should be dedicated to essentials, such as housing, transportation and groceries; 30% can go toward wants or discretionary spending; and 20% should be dedicated to savings. Pay yourself first even if it is only $5 per paycheck. In these inflationary times knowing where your money is going especially towards essentials is crucial.

4. What is one thing I can do to increase my income?

You need to identify one thing you can do to increase your income. Don’t make it too complicated, come up with just one thing to start. Explore that idea until either you take action on it or learn through research that it’s not going to work. I have added an additional source of income through side hustles. I really like Survey Merchandiser and Field Agent. Your salary only goes up so much, but the wealthy have multiple sources of income. What is yours?

Reminder: personal finance is a “personal journey” take a small step everyday to get there!