Why Are We So Vague About Personal Finance?
Relatively few people can accurately and truthfully answer even basic questions relating to their personal financial situation, such questions as:
1. Do you know what your account balances are? This pertains, among other things, to bank and savings accounts, brokerage accounts and loans, all of which are part of almost everyone’s personal finance landscape.
2. Do you know what interest rates you are paying on such things as credit cards, home equity loans and auto loans?
3. Do you know what the terms of payment are on loans and other contractual obligations?
4. Do you have a plan for setting aside funds for payment of taxes, retirement contributions and other irregularly recurring items? Do you react with surprise when they come due?
5. Do you have a budget which you actually live by?
