Updated on 2/28/2019 (End Of Every Month)
Everyone should know what questions to ask themselves when it comes to their finances and their future. If you are able to answer YES to every one of these questions, you are on your way to financial freedom AND doing what you can to not be a burden to anyone including our government.
1. Do you have a Traditional, Roth, SEP or Simple IRA?
2. Do you have a 401(k), 403(b), Solo 401(k), Thrift Savings Plan (TSP) or Pension?
3. Do you have a savings account or emergency fund of at least $2,000?
4. Do you have a monthly budget?
5. Do you have a Last Will and Testament, Living Trust, Power of Attorney, Living Will, Advance Directive and Estate Plan?
6. Do you have a Flexible Spending Account (FSA) or Health Savings Account (HSA)?
7. Do you have Life Insurance?
8. Do you have Health Insurance?
9. Do you have Disability Insurance?
10. Do you have Long Term Care Insurance?
11. Do you own individual Stocks, Bonds, CD's, ETF's or Mutual Funds in a bank or brokerage account?
12. Do you have a positive Net Worth or are all of your debts paid off?
13. Do you manage your own investments?
14. Do you save or invest at least 15% of your net income?
15. Do you annually maximize your retirement account contributions?
Being prepared for emergencies and having a plan for your money will save time and help to avoid hardships in the future. These are the steps I will take to maximize my goals and live responsibly.
1. Roth 401(k) - Contribute $19,000 every year
2. Receive Maximum Match by Employer to Roth 401(k) of $6,000
3. Roth IRA - Contribute $6,000 every year
4. Health Savings Account (HSA) - Contribute $3,000 every year
5. Receive Annual Contribution by Employer to HSA of $400
6. Brokerage Link Account - Contribute $15,000 minimum every year
7. Checking Cash Account - Save and Maintain a $5,000 balance (daily living expenses)
8. Emergency Cash Account - Save and Maintain a $2,500 balance (health costs, auto repair, etc.)
9. Employment Cash Account - Save and Maintain a $7,500 balance (tide you over until you get another job)
10. Need & Want Cash Account - Save and Maintain a $5,000 balance (auto, home, etc. / mattress, appliance etc.)