When you’re in your 30’s there are no excuses anymore; you need to get your finances in order and you should be able to answer these very important questions about your financial health.

This is great because being on track with your finances also means that you have time and energy to focus on your goals and accomplishments.

"Knowing your Net Worth will make it easier to know in which areas you are good, and which financial areas need improvement."

1# What is your Net Worth?

Knowing your Net Worth will make it easier to know in which areas you are good, and which financial areas need improvement. Net Worth can be calculated as follows;
(Assets - Liabilities = Net Worth). Your "Assets" consist of everything you own; car, cash, investments. Your "Liabilities" are anything that you owe; mortgage, loans, credit card debt. This equation is something you should do at least once every 6 months. Once you’ve set yourself up, it’s easy to calculate your Net Worth.

2# How do you divide your budget and why?

By now you should definitely have a budget. It is important to know how you divide your budget and why you decide to do that. Know what things you value. Are you spending on those, or on things that don't add value to your life? If you're not spending on what you value, it's probably not working for you.

Once or twice a year you should revisit your budget and see if it is still working for you. Is the method such as the 50/20/30 rule or envelope system still working for you, or is it time to make a change?

3# How much debt do you have against how much interest?

The easiest way to reduce debt is to know how much you have and what interest you are paying on it. Check once a year if you can find a way to reduce the interest you have to pay, by discussing this, for instance with your bank. In a market where interest rates tend to change a lot, your bank might be open for a conversation. Also revisit your payments towards your debt. Are you able to increase them to get rid of debt sooner?

4# How much have you saved for your retirement?

This answer is different for everyone. What is important is that you have calculated what you would be needing and how much you have already put towards that and how much you still need to save. Make sure to know your numbers and to have a plan. You do not want to surprised when retirement knocks on your door.

So the goal is...

The goal is to grow your personal wealth. Are you on track with your finances? Leave us a comment. Let us know what methods work for you!