As you work towards a solid financial future, taking stock of how things are going is important. How is your financial health right now? If you’re not quite sure what the answer may be, here are some things to check in with to make sure you’re on the right track to your financial goals:
How is your financial security?
If you’re looking to build financial wealth, you need financial security. The last thing you’ll need on your way to building good financial health is scammers stealing your hard-earned money.
From medical identity theft to tax fraud, the way thieves are stealing people’s money in this day and age is innovative. What this means for the money you’re working hard for is that you need extra protection. From how you use your cards to the passwords and security you have for your financial accounts, it’s important to keep your money as safe as possible.
Are you able to save on a monthly basis?
Something that can be a sign of financial well-being is the amount of savings that you have. Are you saving every month? If you’re not already saving, savings can do a lot to help you build up the financial wealth that you need.
Open a savings account today with your preferred bank. Consider setting up automatic transfers from your checking account to your savings, so you don’t need to save money. You can start small as you build up your income. Many savings accounts limit how many times you can withdraw money every month, so this can help keep your money where you want it to be.
How is your credit score?
Your credit score is important to take care of your way to financial well-being, and it can help in scenarios like renting an apartment and buying a home. A good credit score is good.
An excellent credit score is what you’re aiming for. If you’re not working on your credit score yet, consider using a website like Credit Karma to keep track of your progress. Pay off those credit cards and do your best to stay ahead of debt.
Do you have an emergency fund?
If you don’t have money in your savings for emergencies, you’ll want to set up an emergency fund as soon as possible. While opening a savings account is one thing, we typically set up savings for a future plan, like buying a home or perhaps retirement.
An emergency fund can be separate, where you save money that can be used for your essentials in case of job loss, medical emergencies, and more. After what happened in 2020 with sudden layoffs and then the subsequent issues with finding and being able to keep jobs, people have learned that life can bring unexpected circumstances out of nowhere. Do your best to be prepared with an emergency fund in 2023.
Take a look at your DTI
If you’re looking for financial well-being, look at your debt-to-income ratio. Debt can make it hard to build your financial health. If you don’t plan to pay off your debt, it’s a good idea to look at your budget today to see how to spend less on things to pay off your debt sooner. If you have a healthy DTI, you could say you’re doing well financially.
In Conclusion
Different things impact your financial health, from your debt to your credit score. Take time to assess your financial wealth so you can make any improvements needed to live a financially healthy life.
