EXPERTS LANE n FINANCIAL ADVICE
Are You
Financially Healthy?
By Nesterine Blair, WFG Associate
F
The concept of financial health also ac-
knowledges the forces beyond our con-
trol. Just as physical health is a combi-
nation of behavior, genes, and access to
good medical care, financial health is a
result of personal decisions and abilities,
in the economy and access to good, unbi-
ased financial services and advise.
Definitions of financial health typically
have three factors in common:
• You can manage your day-to-day
financial life.
• You can absorb a financial shock.
• You're on track to meet your
financial goals.
3. Pay your bills on time. You manage
your cash flow and meet your regular
financial obligations. Missing payments
could cost you money in late fees, hurt
your credit, and cause stress.
4. Create a “decent” emergency fund.
You should have at least six months
of expenses set aside, but starting with
a smaller goal of $1000 could prevent
you from a sudden setback with
financial shock.
5. Stay on track with retirement savings.
How much you will need will vary by
age and circumstance. Do the calcu-
lations and see how much you should
be setting aside.
TIPS FOR FINANCIAL HEALTH 6. Make sure your debt load is sustainable.
Ensure your expenses are less than
60% of your after-tax income. Set aside
20% for wants and 20% for debt
repayment.
1. Spend less than you earn. This is the
foundation of your financial health.
You cannot get out of debt or save for
the future if all of your expenses eat up
your available income. 7. Don’t carry credit card or other high
interest rate debt. There’s typically
nothing good about credit card debt,
which often leaves you paying for items
long after you’ve used them up.
2. How much do you spend on coffee,
snacks, lunch, daily? Are you keeping
track of that amount? The monthly
amount will sometimes surprise you. 8. You have a good credit score. Good
credit is a safety net for when you need
it and some people treat credit scores
as a proxy for financial health.
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VOL 5, Issue 3
9.
You’re appropriately insured. You want
to be properly protected against fi-
nancial shocks that could wipe you out,
including medical bills, lawsuits, natural
disasters, or the death of a family mem-
ber. Health insurance is a must. If you
have a vehicle you need auto insurance
with liability. You likely need life insur-
ance too.
If you have any questions or need help
with any of the above, please give me a
call at 321-438-6228 and let’s have a chat
and get you on track for GOOD FINAN-
CIAL HEALTH.
Nesterine Blair, WFG Associate
WFGConnects.com/NesterineBlair
[email protected]
STOCK
inancial health is a term used to
describe the state of one's per-
sonal financial situation. There
are many dimensions to financial
health, including the amount of savings
you have, how much you're putting away
for retirement and how much of your in-
come you are spending on fixed or non-dis-
cretionary expenses. Most Americans have
started eating healthier, more organic meals
and snacks along with exercising to improve
their physical health, but they haven’t con-
sidered their financial health. Ensuring your
finances are healthy will help alleviate un-
necessary stress and worry.