As we all know financial fitness is very important in order to lead a happy and healthy life. A research study says that mismanaged finance is one of the major causes of stress in one’s life which in turn also affect physical and emotional health of an individual.
MoneyMindz.com, First Free Online Financial Advisors is sharing some of the pointers that will help you check your personal fitness level:
Your Physical health:
One fact which you cannot deny is that healthy mind lies in healthy body and in order to extend this we can even say that healthy finances are result of healthy mind and body. Basically, everything is interrelated. Make sure that you keep yourself in good shape before anything else.
A bad health impacts your personal finances badly worsening the situation further. Your financial fitness is a factor of your overall fitness.
Arrangements for emergencies:
Are you prepared for situations like sudden hospitalization, job loss or major repairs etc? Although some risks can be transferred to insurance company but some are also to be absorbed in personal finances.
Basically, the quantum of emergency fund, involvement of family members in financial decision making and book keeping, life / health insurance cover tells your readiness facing life’s uncertainties.
Credit report can be considered as a parameter to find out your financial fitness level. Healthy Credit score i.e. anything above 750 is always desirable among financial institutions. Your discipline can be depicted by the high credit score and clear intention towards credit usage and also good management of your finances.
Some situations like job loss certainly requires sound financial back up but along with that it requires you to be employable all the time. There is a saying that, “Investing in knowledge, pays the best interest”. Depending upon your employability status, your financial fitness can be determined. As a result you need to invest money in upgrading yourself. It is also necessary to always keep you employed even in bad economic scenarios.
Know what you owe and own:
In order to improve your strengths and fix up your weakness, your fitness level has to be looked after. You are considered as financially fit if you are well organized in your finances; you know your assets, liabilities, net worth. When you actually, come to know that you are spending more than what you’re earning then surely you will become aware of everything.
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