Mentors aren’t just for kids trying to pass Math or History and can be life-changing for adults trying to get ahead. If you want a headstart on those financial goals, getting coaching from an expert is valuable. Some of the world’s richest people have had some form of mentorship. You can learn much from a good mentor, but you must ask the right questions. Here are the best money questions to ask your financial coach if you want to get rich.
The best money questions to ask your financial coach
“How do I create a budget that works?”
This is one of the first and most important money questions. Having a budget means having a plan for your money and ensuring you’re meeting all your needs. Without a plan, you could be spending too much on purchases that aren’t truly important.
One important concept is to budget every single cent you earn or Zero-based budgeting. This ensures that all your money is doing something for you, like paying bills or acquiring assets.
“How do I set financial goals?”
A good technique for setting financial goals is to have a single, main long-term goal. Once identifying that goal, you can have short-term goals that act as stepping stones to helping you achieve them.
Let’s say your long-term goal is to own a $200,000 home in 20 years. With that goal in mind, you can set short-term goals to help you reach it. For example, saving at least $10,000 a year or eliminating your current debts.
You also want your financial goals to be measurable and timed. That way, you can track your progress, and it’ll be easier to stay motivated.
“How do I improve my spending habits?”
This might be one of the more important money questions to ask if you’re trying to save more money. Thankfully, financial experts may help identify where you’re spending too much money, even if you may not realize it.
Moreover, one way to lower overall spending is to use coupons and discount codes. A quick Google search could save you hundreds of dollars down the line! If you’re interested, check out my article on some of the best coupon code sites to learn more.
“What tools can I use to manage my finances better?”
Need help managing your finances? You should leverage the right financial tools. Budgeting apps, financial trackers, and other tools can make your life easier. Your financial coach can recommend the ones you use.
If you’ve got a partner, you may want to consider using budgeting apps specifically made for couples. Check out my list of some of the best budgeting apps for couples if you want some options.
“What do I invest in?”
Like many of the best money questions, you’ll probably get “it depends” as a response. What you want to invest in depends largely on your financial goals and risk appetite.
There’s an investment option for everyone, whether you want fast cash or long-term investments. You won’t find out what’s best for your financial goals unless you educate yourself about building your assets.
“What should I do with my money to get more of it?”
Your resident financial expert may have some ideas on using your money to get more money. Spending money to make money isn’t just about acquiring assets. It can also be about acquiring tools, skills, or an education needed to increase your financial gains.
“What can I do with my time to get more money?”
Time is money because you can use it to get more money. Actually, time is even more precious because you can’t get it back after you spend it. Spend your time acquiring skills that will further your personal and professional development. Some especially relevant skills you can leverage for higher-paying opportunities include improving your data literacy skills by learning to code, design or edit video content.
Consider starting a business in something you’re passionate about. Having an endeavor you enjoy to add to your monthly income will improve your mindset and your savings.
“How much should I save by X age?”
This is one of those money questions to ask when you need direction in your financial life.
Most experts say you need to hit a certain number in your 30s, 40s, and 50s.
According to CNBC, you’ll need to save the following:
- The equivalent of what you make in a year by Age 30
- Three times your salary by Age 40
- Six times your income by Age 50
- Eight times your income by Age 60
- Ten times your income by retirement
But this isn’t a hard rule! Everyone comes from different backgrounds, and you’re not “behind” just because you don’t hit this number. If your finances could improve, you want to channel that into motivation.
“How do I get ahead financially?”
To get ahead financially, you’ll need to acquire various assets and skills. Developing your skillset and portfolio will make you worth more in terms of net worth and being hireable. You’ll also need to be ready to put in the work.
“How can I handle financial emergencies?”
Having an emergency fund can be a literal lifesaver. Typically, you’ll want this to be about six months to a year’s household expenses. Having this amount saved up, with some extra headroom, should keep you afloat if anything happens.
An emergency fund will vary in size from person to person. However, if you want a specific number, the average American household spends about $5,000 monthly. Your target emergency fund may be around $30,000 to USD 60,000.
“What do I need to do to become financially independent?”
You might be dreaming of having a place to yourself and being able to meet your own needs. How much money you need to be financially independent will depend on several factors. This includes location, cost of living, lifestyle, and more. Check out my article on financial independence for women if you want more tips.
“When should I spend money on myself?”
It’s unrealistic to not spend any money on yourself. After all, you’re a human being, and spending money on yourself sometimes will keep you sane. But if you do it too much, you’ll be setting yourself back financially. By asking this money question, you can find a system that lets you enjoy life without compromising your goals.
“How do I make giving a part of my budget?”
After a certain point, you’ll find that all your needs are met, and you’re set for the future. At this point, you may want to consider giving back to the world, like supporting a cause you believe in. Even financial genius, Dave Ramsey, recommends giving back to the world.
Remember the saying: “Don’t set yourself on fire to keep others warm.”
“How do I beat debt?”
If you’re in debt, how you beat it may depend largely on the kind of debt you’re in.
If you’re in credit card debt or other high-interest debt, paying it off ASAP is recommended. That’s because the money you will owe will increase greatly the longer you take to pay it off. That means you could owe much more money than you initially borrowed!
However, with low-interest debt, you could pay just the minimum amount instead of paying a substantial amount every time. You could then use what’s left over to earn even more money from investments. This could let you earn more money from investments than your debts cost you from interest.
“What are the next steps to learn even more?”
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