Today is a great day to take action now and get good financial health.
People always talk about getting healthy. When they do, they talk about losing weight, getting into better physical shape, or joining a gym. What they almost never talk about taking control of their finance and getting good financial health. This is a mistake. Finances are important. No matter where you live and how you get the money you use to finance your life, your finances are important.
When you are in good financial health, you are able to meet your debts in a timely manner, you have a sufficient bank account, and are not in the precarious position of living paycheck to paycheck. Take a moment now to look at your financial condition. Ask yourself the following questions:
- Do you pay your bills on or before the due date each month
- When you pay your bills, do you have any money left in your accounts for things you want to do, things you enjoy
- Does your bank account have enough money to cover six to twelve months of expenses if you lost your job
- If you lost your job today, are you in danger of losing your home or car
If you answer those questions honestly, it will give you a good idea of the state of your financial health. If you are able to pay your bills on or before the due date each month it is an indication that you have good cash flow. This means that money comes to you when you need it and you are able to spend that money when you need to. Cash flow is important. If you cannot pay your bills on or before their due dates, it is an indication that you either need more income or you need to adjust your spending so that you have cash available when you need it.
Once you have paid your bills, if you have either no money left, or not enough money left to do the things you want to do, the things you enjoy, you do not have sufficient income. This is a clear indication that your financial health is not good. It is not good to be in a position where all your income goes to paying bills and you have no income for the things that bring you personal satisfaction and fulfillment. If all your money goes to your bills and then there is nothing left, you need to bring in more income. Your financial health will improve with an influx of additional capital.
If you are living paycheck to paycheck, you are not in good financial health. It may surprise you how easy it is for a person to lose her job. Even if you do a great job and are a star employee, there are still a myriad of ways you can lose your job. These ways include the following:
- A fire at your place of business
- The owners of the company sell the business
- The company unexpectedly downsizes
- Changes in federal, state, or local law eliminates your position
- The company shuts down without notice
The newspapers, magazines, and blogs are full of stories about these types of things happening with businesses every day. These things are real possibilities. Any one of them could have a terrible impact on your financial health.
Be encouraged, the news is not all bad. No matter how bleak your financial health may be at this time, you can make changes and improve it. Here are a few ways you can improve your financial health:
- Look for ways to lower your expenses
- Create and stick to a budget that includes saving money on a regular basis
- Is there a hobby that you can turn into a part-time business to earn extra income
- One girl’s trash is another girl’s treasure, what can you sell for extra cash
- Find a second job or a better paying first job
- Look at finding a roommate to share expenses
Your financial health deserves just as much attention as your physical, mental, sexual, and emotional health. Do not neglect it. When you make plans to address your other areas of health, be sure to pay attention to your financial health as well. You will be glad you did. So, the question for you this magnificent day is, what steps will you take today to improve your financial health.