“Financial Checklist in your 30’s & 40’s” by FinVise India
www.finviseindia.com “ Financial Checklist in your 30’s & 40’s ” ¨ Build an Emergency Fund Build an emergency fund to assist with any unexpected expenses. It is recommended that your emergency fund be equal to 3-6 times your monthly income. Keep this emergency fund liquid in either cash or cash equivalents. ¨ Review Your Budget Each Month Understand your cash flows that are coming in and going out each month. Organize your expenses in categories including discretionary and non-discretionary spending. Include monthly savings as a budget item. ¨ Calculate Your Net Worth Annually Make a list of all of your assets and liabilities. Subtract the liability figure from the asset figure to calculate your net worth. Ideally the value of your assets should increase or liabilities should decrease year on year. ¨ Pay Down Debt If you have multiple loans, start by paying off your loans with the highest interest rate. If the interest rate on your