English: IOur financial health has an impact on our emotional, mental and even physical health. Just as there are things you can measure to determine your physical health, there are things you can measure to determine your financial health. For example:
- You spend less than what you earn. Every month you have money left over and you are able to save.
- You use your credit cards for emergencies only, not for regular expenses such as clothing, groceries and bills.
- You are prepared for financial emergencies. The ideal is to have savings equal to at least six months of expenses, but you should have at least something set aside.
- You have retirement savings thru your job and/or on your own, apart from your emergency savings.
- You are able to pay all of your bills on time, without incurring in late fees or not paying one to pay the others.
- You have good credit. Your score is made up of factors such as payment history, credit card balances, collection accounts and others.
If you are able to answer yes to these, you are on the right track! If you answered no to any, your financial health needs improvement! If you need help, seek it now, don’t wait.