Blonde on a Budget did another post for her financial boot camp, and I really enjoyed it and thought it was a great idea, so here's mine! She did a SWOT (Strengths Weaknesses Opportunities Threats) analysis on herself and her financial situation. Also take a look at Cash Money Life's SWOT and the full article.
Determine Financial Strengths
Determine what your financial strengths are and reflect on how you are strong.
“Helpful questions: What are the strong areas of your finances? Do you have a positive monthly cash flow? Are you paying extra on your debts? Are you debt free? Did your income recently increase?”
My strengths would be that I have two Bachelor degrees, and I'm working on my MBA, so I have a lot of opportunities to increase my income, and my degrees also helped me get to the financial situation where I am. Without my degrees, I would be a little nervous. I have a positive monthly cash flow and I am paying extra on my debts. Also, my both my house and car are worth more than I paid for. I bought my house at the end of 2009, so I got it at a pretty low price. And my car has only depreciated around $2,000 since the day I bought it (which was over 3 years ago).
Determine Financial Weaknesses
What are your financial weaknesses? Try to determine what's holding you back.
“Ask yourself these, and similar questions: Have you maxed out your income potential in your current job? Are you in debt? Are you upside down on a car or house loan? Are you living paycheck to paycheck?”
My weaknesses are that I have debt, and a lot of it. I have around $30,000 in school loans, a car loan, and a mortgage.
Determine Financial Opportunities
Determine what opportunities are available to you but you have not taken yet.
“Financial opportunities: Freelance work, tax preparation, consulting, writing, crafts, overtime, investing, earning a promotion, selling items on Ebay or Craigslist, debt consolidation, eliminating exposure to poor investments, reducing investment fees, downsizing your house, buying a more fuel efficient car, etc.”
Yes I know, most of you are probably extremely annoyed by me saying this, but I really want a part-time job or some sort of freelancing gig.
Determine Financial Threats
Determine what your threats to your financial situation are.
“External factors to consider: Are you in danger of losing your job? Is your mortgage rate about to reset to a higher APR? What are the current economic factors that may affect your job/investments/income streams?”
I'm not in danger of losing my job. A threat would be if something bad happened with the house, like if we needed a new furnace or something else expensive.
Join the free Master Your Money course!
Join the free email course and finally learn how to manage your money better, pay off debt, save more money, and reach financial freedom.