How to assess your financial wellness

Living at the current times where stress and fear of the unknown are at a fever pitch, most of us have at least one or two pressing matters that need financial attention.

Questions, however, arise whether or not we can meet all our financial obligations in good time.

If you happen to stress over unpaid utilities, back payments and rising debts, consider yourself financially unwell. This is a wakeup call to analyze your financial health.

The same way we take good care of our bodies and go to a doctor for a diagnosis when we are sick, the same seriousness needs to be applied to our finances.

For you to determine whether you have your money in the right track or not you must identify certain signs.

Do you have an emergency fund set aside? Do you have little to no debt? And are you on track to accomplish your financial goals?

If you answered yes, you deserve a tap on the back because you are financially woke. And if this doesn’t even come close to where you are now, or you have no idea how unwell you may be financially, here is how you can assess.

The first step is to determine your financial worth. List down all your debts and liabilities on one side then list all your income on the opposite side.

The value you get after deducting your liabilities from your income will give you a clear picture where you stand financially.

If you have a negative value it means your debts are more and action needs to be taken to correct that. If you happen to have a positive worth, this is no excuse to go splurging but rather plan how to spend your extra cash and be able to increase it.

Many people don’t budget their money and that is where the problem begins. You have no idea how much you are spending on a given day or week and whether or not you’re living within your means.

Keep this up and you will continue living in debt. Don’t estimate expenses in your head and make calculations only to forget what you intended to pay off three days later.

You must be connected to your money and know where it is going. And this can only be possible with a proper budget.

If an emergency was to happen or you lost your job unexpectedly would that finish you financially? If you have not been setting some money aside for a rainy day you need to start now.

Start little and review it according to your income level. The more you start earning the more should save and open an emergency account. Make sure it is easily accessible like in a safe or a bank should anything happen.

We all have dreams and accomplishments we would like to achieve by a certain time in life and if you’re not on that path yet you need to do some evaluation.

This is where a plan comes in handy.

It will show you what you need to cut down on and where to pump in more money. These small changes will help you realize your desire of owning that lake house, starting a retirement fund or an investment you have been eyeing.