5 Important Questions To Ask Yourself For Financial Self-Reflection

By Michelle Wanjiku
Financial freedom comes from being mindful of the money decisions you are making. The one money mistake we all make is not being aware of our finances on a deeper level and not just how much you have in the bank.
Being knowledgeable will help you make better decisions that would improve your financial situation. Here are a few questions you need to ask yourself when it comes to your finances.
1. Which financial decision am I most proud of?
What was the last financial decision you made that brought you closer to achieving your goals? Maybe you decided to carry food instead of buying lunch every day and as a result, you are saving more money. Or maybe you increased the amount you pay to HELB every month bringing you closer to being debt free.
No matter what it is, you need to congratulate yourself and try and find more ways to better your finances. If you haven’t made any decision you are proud of then this is a chance for you to make one and try to find ways to improve your finances.
2. What is one thing I could make today that would improve my finances?
After seeing what you have done, it’s time to see what you can do now to better your financial situation. Is it to unsubscribe from that pay-TV package you don’t even need because you rarely watch TV or it could be reading that money mentor book to help you get a better understanding of how to manage your finances.
It doesn’t matter how small, coming up with something you can do to better your finances will go a long way in the long run.
SEE ALSO >>> Best Ways to Save More Money Without Feeling Miserable
3. How effectively am I meeting my long-term goals?
What are your long-term financial goals? This is a question you should already have an answer to. Remember failing to plan is planning to fail.
Long terms goals are only achieved by the steps you are taking now no matter how small they seem to you.
For example, if your goal is to buy land, saving a few shillings every day will bring you closer to achieving it.
So what are you doing to ensure you are getting closer to achieving your goals?
4. When is my next “money milestone”?
Being prepared for the next big money change in your life will help keep you from completely deviating from your financial goals.
It could be your child starting school in a few months or even year, it could even be you are moving out and have to start paying rent; you could lose your job or something else. Planning for this will ensure that when the time comes, you don’t struggle with your finances.
This is where having an emergency fund and savings come in handy.
READ ALSO >>> The #1 Money Mistake You’re Making (and How to Correct It)
5. Why am I making this purchase?
Thoughtful spending is a great way to ensure you don’t waste money buying things you don’t really need. So before you buy anything, you need to ask yourself why you are buying it in the first place.
If the answer does not show that it is a need then you should clearly not make that purchase.
Also, try and pay from everything in cash, that way you get a sense of losing money. This will go a long way in ensuring you don’t spend too much money on things you don’t need.
SEE ALSO >>> Financial Freedom Is Not A Fantasy: The 7 Secrets To Get You There
In Conclusion,
Making smart financial decisions is what is going to better your financial situation. It doesn’t matter how much you are earning, there are people earning 100K and are still broke while there are those earning less than half that but never lack anything.
You need to make a conscious decision to take care of your finances. This is the only way you can achieve financial freedom.