The people with the best personal finance are those who are constantly considering tips for how to improve. It can be easy for your personal finances to take the backburner as you worry about work and your social life, but considering ways to improve your personal finances can help you greatly in the long run. Thinking about debt management strategies, retirement savings advice, and emergency savings tips can help you in your future.

In this guide from Tennessee Title Loans, Inc., we will go over a few personal finance questions that can help you make necessary improvements to your economic life. After explaining our financial health checklist, we will go over how title loans can help when faced with a financial emergency.

What Are The Personal Finance Questions I Should Be Asking Myself?

Everyone should take an active role in their finances, constantly thinking of ways to improve and prevent economic difficulties in the future. However, many may need help knowing where to start, as there are so many potential facets of personal finances to worry about. Trying to improve everything at once can be overwhelming, but our financial health checklist can help with questions you should ask yourself about your finances.

The following are five personal finance questions you should ask yourself:

1. Do I Have Enough Emergency Savings?

Of all the important personal finance questions to ask, none is more important than asking yourself if you have enough emergency savings. You never know when a financial emergency can arise that you may not be able to pay for with discretionary income from your latest paycheck. You may have to afford a large surprise expense or pay for weeks or months of expenses without a paycheck if you lose your job.

Building an emergency fund is an important way to protect you from financial issues you cannot plan for. The rule of thumb here is to have enough money to pay for 3-6 months' worth of living expenses if you work a typical 9-5 job. However, if your income is less predictable or somewhat unstable like if you’re self-employed or work in the gig economy, you should keep 9-12 months’ worth of living expenses instead.

The following are some emergency savings tips:

• Automate your savings
• Consistently put money from every paycheck into an emergency fund
• Cut costs and put saved money away for emergencies
• Open a savings account
• Set savings goals
• Put your tax refund into an emergency fund

2. Am I Carrying Too Much Debt?

Some personal finance questions are quite uncomfortable to ask, but they’re still important. For instance, you must ask yourself if you carry too much debt. The monthly payments to service your debts might not seem like a big deal when things are going well. However, if your income were to reduce, could you still sustain your current debt?

If the answer is no, it might be wise to cut back as much as possible. Remember, there’s good debt and bad debt. Good debt helps you build wealth, and bad debts don’t benefit you after the initial purchase. You may not be able to avoid debt from housing loans, but smart financial decisions can prevent you from taking on unnecessary credit card debt.

Some debt management strategies include paying off smaller debt quickly, consolidating debt for lower monthly payments, prioritizing debt with high interest rates, and avoiding taking on more debt.

3. Am I Setting Aside Enough For Retirement?

Another thing on a financial health checklist that you should ask yourself is if you’re saving enough money for retirement. This is likely one of the most often ignored personal finance questions on this list. Still, the money you put aside today will go a long way toward creating a comfortable life for yourself post-retirement.

The rule of thumb for retirement savings advice is that 15% of your regular income should go to some form of retirement savings or investing. You’ve got lots of different options for where to save and grow your retirement money, such as a 401k or IRA. Research your options online and get into the habit of putting money aside regularly as soon as possible.

4. What’s My Credit Score?

Your bank account balances aren’t the only numbers you need to keep track of; you should always know your current credit score. That credit score is a helpful snapshot that tells you how healthy your finances are, based on your payment history, mix of credit accounts, and how much debt you have.

Keeping that score in a healthy range is also important later in life when you want to make important purchases like buying your first home. Higher credit scores tend to result in better financing terms, whether that’s for purchasing cars or homes, for instance. Keep track of your credit score and do whatever you can to improve it over time, such as making payments on time, paying off debt, and keeping a healthy mix of credit accounts.

5. Do I Know Where To Get Quick Cash In An Emergency?

There will be moments in life when you’re faced with a situation that’s too expensive, even for your well-built emergency fund. Due to that, you must have an idea of where to get emergency cash quickly to help you get through that challenge.

Title loans from Tennessee Title Loans, Inc. can help when you need quick cash today. Car title loans are incredibly helpful in a pinch because they involve a quick and easy application process and a quick payout if you’re eligible for the loan. You can use your lien-free car title if you've fully paid off your vehicle to get approved for up to $2,500 in emergency cash.

FAQs

Should I prioritize saving for an emergency fund or retirement?

Many will wonder where their priorities should lie when reviewing their financial health checklist. In this case, we suggest prioritizing your emergency fund, as that is likely to be more necessary sooner than your retirement savings. However, you should do all you can to save for both.

Does your credit score affect title loan approval?

Your credit score will not affect title loan approval. You can get approved with good credit, bad credit, or no credit at all. This is because you use collateral to secure the loan, meaning you don't have to prove your creditworthiness.

Are there alternatives to title loans for emergency funding?

Tennessee Title Loans, Inc. also offers line of credit and payday loans to borrowers who do not own their vehicle outright. These loans offer less money than title loans but have easy approval processes that take less than a day for those who cannot qualify for car title loans.

Apply For A Title Loan Online - Get Approved For Up To $2,500 Today!

The best time to ask yourself these personal finance questions is now. You should ask yourself if you have enough emergency savings, if you’re carrying too much debt, if you’re saving enough for retirement, and how you can improve your credit score.

You should also think of ways to afford financial emergencies, such as through title loans. Remember that inquiring about title loans online from Tennessee Title Loans, Inc. could help you get emergency cash quickly, whether you have good or bad credit. Don’t hesitate to fill out our online inquiry form today!

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.