You May Not Want To Run A Financial Health Check (But You Should)
By:     -   September 23, 2017   -   Business  -  Finance   -   0 Comments   -   655 Views
MARK6652

Photo: Nappy.co

The area of finance is a very touchy and sometimes uncomfortable subject. However, it is completely unavoidable, and neglecting our money matters can potentially lead to significant issues. So yes, it’s important and thus, we should care about it. As much as one may try to sweep things under the rug, much like household chores and answering a thousand and one questions from a curious child every day, finance is pretty hard to neglect. But on the bright side, if you continuously perform regular checks, most of the time, you won’t encounter any major surprises (hopefully).

As is comes to finances, “getting it right” tends to involve quite a lot of time and effort.

Rather than pretending that your household finances are just going to take care of themselves, why not go through a financial health check? At the very least, doing so will mean that you know the status (i.e., debt-to-income ratio, etc.), as well as how to tackle any major issues you encounter.

Are your answers “yes” to the following financial health check questions? If not, please take note of these important considerations.

Do You Have Multiple Streams Of Income?

If you have a job, then it’s easy to just think that you’re done. You’ve got your job, you’ve got your income – nothing else for you to worry about, right?

Um yea, see the thing is… that’s not the best way of managing personal finances. In fact, it could be a dangerous way, because what happens if that job vanishes? What happens if you have to take time off and you’re not prepared to do so, with a backup financial reserve? Or what if you get unexpectedly tossed back into an even-more competitive job market?

It makes perfect sense to do your best to ensure you have a couple of additional revenue streams. They don’t have to make you a fortune; some you might even do for the fun as much as anything else, but they are a lifeline just in case the worst happens.

Is Your Retirement Looking Secure?

“What?!” you may wonder, looking at that statement, “My retirement? I’m too young to be thinking about that!”

Nope, not the case: you’re never too young to start planning for retirement (cliché alert!). You should at least need to have a pension started and some idea of where you’re heading. The longer you put this off, the worse it will be when you finally realize it’s beyond time to get things rolling.

Do You Know All Your Outgoings?

Thanks to the wonders of direct debits, a huge chunk of personal finance management is largely automated these days. Hooray! Less for you to have to think about!

WRONG.

The downside of that is that you can find yourself paying for things you don’t need (i.e., policies you long thought were cancelled or overpaying on your gas and electricity). So, take some time to go through all the monthly amounts that go out of your accounts to ensure that they’re accurate. Review your receipts and bill line items to check for potential errors and overages. If you find anything of concern, act on it as soon as possible for resolution.

Does Anyone Owe You Money?

If you don’t pay a huge amount of detail to everyday finance, you might have missed money that is owed to you. It could be an insurance payout, a small invoice someone didn’t settle, or still not getting a refund on a purchase that didn’t work out.

If you do find that you’re owed money, you’ll find yourself suddenly struggling with the awkwardness of having to chase it up. Nevertheless, do it.

And always remember: Never loan money that you can’t afford to lose.

When you get to the point you can answer yes to all of the above, then you’re well on your way to developing great financial habits. Keep it up!

 

    SHARE THIS STORY !