What is the secret to financial health?
Does such a thing exist……and what does Financial Health actually mean?
Well, financial health is about having enough money to enjoy the things you love.
It means having money work to your advantage and not just to your bank or financial institutions benefit!
AND…… it certainly means not having any financial worries or stress relating to money.
What you were taught or brought up to believe about money, has shaped you today, whether you like it or not. What you heard growing up by loved ones, will determine whether you spend everything you earn or actually have some form of a savings behind you.
Financial health is a term used to describe the state of one’s personal financial situation. There are many dimensions to financial health, including the amount of savings you have, how much you are setting away for future retirement and how much of your income you are spending on fixed or non-discretionary expenses such as; having a roof over your head whether renting or owning our home and basic food costs to name a few.
Here are six ways to know if you are in good financial health.
- don’t spend every dollar you earn, but have money left at the end of pay day
- have a savings account and money is put away for a rainy day.
- are able to pay towards your home loan repayment more than the minimum monthly
- paying your bills on time and before the due date
- at the end of each month you have a zero balance on any credit cards
- have money regularly put into an investment portfolio, whether it be for shares, managed funds or for property investment for example, and
- your annual holidays are saved up for and paid in full before heading away.
Making sure you work towards good financial health will mean the difference between living a very comfortable and happy life during your retirement years OR relying on government support.
So do you have good Financial Health? If not, then time to do something about it don’t you think?
There are many financial education resources available at your local library or books and audios that can be purchased online. Another great way to build on your knowledge is attend a course or seminar on a topic that interests you.
If you are looking for more financial education, then check out our first course “Your Money Right Now” which teaches you how to work money to your advantage so that you can design the life you desire.
We look forward to helping you build more financial muscle.
To your financial health
Financial Management 101: teaching you how to build financial muscle!