Real Talk: The Hard Questions You Have to Ask Yourself About Your Finances

Let’s face it, when you’re juggling a career, maybe a side hustle, and your personal life, financial health often gets lost in the shuffle. It’s easy to get distracted and get sidetracked from your long-term goals by your short-term needs (and wants).

The best way–sometimes the only way–to keep yourself in check is to regularly assess your financial health. It answers these questions:

How’s your financial health?

It reveals your financial strengths (like savings or investments) and weaknesses (such as high debt or insufficient emergency funds) Just like taking care of your physical and mental health, you want to make sure that you’re on top of what’s going on, and that if there’s anything wrong, you catch it early.

What are your financial goals?

It’s the first step in setting realistic and achievable goals. Whether it’s buying a house, saving for retirement, or paying off debt, a clear view of your finances helps in planning these goals effectively. Also, goals are most effective when they’re SMART—specific, measurable, achievable, relevant, and time-bound.

Are you in debt? And will you be able to get out of it?

Knowing your financial health is key to managing debt. It helps in strategizing how to tackle existing debt and avoiding potential debt traps.

Are you prepared for the unexpected?

Life is unpredictable. Assessing your financial health helps you ensure you have an emergency fund to cover unexpected expenses like medical emergencies or job loss, reducing stress, and providing security.

Are you ready for the future?

It’s never too early to plan for retirement. A financial assessment can show you how well you’re preparing. And it’s not just retirement. As you move through different lifestages, your financial needs and goals will change. Regular financial check-ups help you adapt your financial plan to these life changes.

If your answers to these questions bothered you. Don’t worry and don’t be ashamed. You’ve already taken the first step by reading this. And fear not, the more you learn, the better you get. In the future, these self-assessments will be more effortless for you.

But don’t forget: this is just a starting point to help you determine where you are so you can plan what to do next.

Here’s a great questionnaire from Chapter 2 of Metrobank Moneybility, “Where Are You in Your Financial Journey?” Take your time answering, and make sure you answer truthfully.

How did you do? Wherever you’re coming from it’s important to do this assessment regularly — say, on your birthdays or at the beginning of each year — to see how you’re growing and learn about how else you can grow.

Ready for the next step? Read the guides below:

• Want to visualize your goals and plan your finances better? Start with your ‘why’
• Two strategies that will help you build a solid budgeting habit
• How to keep good credit (and why you need it)