Health is wealth, they say. Well, much like you have to do what it takes to stay in the pink of health physically, there are 10 simple things you can do to stay fit financially as well. Ready? Let’s go.
Emergency Fund:- Life is uncertain. Jobs are not secure. That’s why you should have 3 to 6 months of living expenses set aside in an emergency fund that can be tapped at all times and is always there to nourish your financial resources.
Track your expense: :More than what you earn, it’s important to keep track of how much you spend. Charles A Jaffe said ,” It’s not your salary that makes you rich, its your spending habits”. If you manage your funds prudently, you’ll be amazed how much of what you earn you can end up using to add muscle to your investment kitty.
Health Insurance: This one is a must-have. Health problems are impossible to predict and medical expenses are always on the rise. And that’s why your finances need Health Insurance to stay healthy.
Term Insurance: You need to provide for a future that takes into account the possibility of your loved ones having to manage without you. The health of your finances is vulnerable without risk coverage insurance.
Know your Net Worth: Know where you stand financially after working so hard for years for your hard-earned money. The state of your finances as a sum of assets and liabilities is good for your finances.
Set Goals : Goals are like the stars. They show you the way. Goals are like milestones. They keep you going. Goals energies life. A strong financial plan needs clear goals.
Saving as a habit: Save regularly. We eat regularly to stay healthy. We try to exercise regularly to stay healthy. Saving regular is healthy for your finances. It’s not that hard. So save regularly. It’s as simple as that.
Plan to Retire: Medical sciences will help us live longer. To live longer, we need more funds. And to generate these funds, you need a good plan. A plan that allows you to retire when you plan to without dealing a body blow to your finances and future plans.
Keep score: Your credit score is important. Keep an eye on it. It’s good to know how banks and financial institutions rate you as an investment. You can check your credit score here. And like a health check, you should get one done every two years.
File Manage: This is most vital. File all your important financial documents, investments, key to login details for demat savings, insurance et al in a safe place online and offline. And, even more vital, let your important family members know.
“You can be young without money, but you can’t be old without it,” said Tennessee Williams. And that’s why it makes total sense to do the 10 things we talked about and keep your finances in the pink of health.