Analyzing your financial picture
Whether you are getting ready to apply for a mortgage, already have a mortgage or are wondering what your budget looks like, analyzing your personal financial situation can be beneficial. Here are some questions you can ask yourself to get a better understanding of your finances:
- How much money do I bring in each month?
- How much do I spend on necessities each month (mortgage/rent payment, insurance, utilities, groceries and gas)?
- How much do I spend on non-essential items (ordering out, movies, entertainment, etc.)?
- How much money do I set aside in savings each month?
- How much do I owe to credit card companies?
- Do I make all of my payments on time, or are they consistently late?
- Do I pay more than the minimum payment due?
Taking an honest snapshot is the first step to improving your finances. Writing down the answers to the above questions can help you create a financial picture for yourself. Once you have the framework laid out, you come up with a plan of action to begin saving more money, pay down existing debt quicker, understand how much you have to work with each month and if you need to consider a way to bring in more money. If you need help understanding your finances, reach out to a financial professional who can assist you with understanding the details.
