Are you financially healthy? – Self Diagnose

By | 05/13/2018

Being in financial shape is like keeping your body in shape, all you have to do is some financial exercises. In this article, you must get financial health check-up and get your financial health reset.

Are you financially healthy

Are you financially healthy?

A lot of people look at this question in different ways and the definition of financial health is different for different segments of people.

what is financial health?

If you compare your system (body) is working properly without any glitch, and if you are suffering from some pain in your body, that means you are not healthy.

On the other hand, you are not getting 100% results from your body.

In the same way, if you are not getting 100% results from your finance, you are financially unfit and you required financial health mentor.

Also Read: Fixed Deposit or Mutual Funds? (Which is better)

Getting return from your financial investments and not only the sign of financial health

but also if we calculate in whole taking all aspects for instance

  • Your investments
  • Your Financial Planning
  • how much you earn
  • how much you spend
  • your saving
  • how you save money
  • how much you earn from your savings

and many more

How to determine the financial health

Everybody on this planet is master in some or other field, and doing their jobs, an amount of money is paid in return

I am talking about jobs like employment, small business, shop owner, consultant and many more.

Are they doing well, yes

but the question is

are they financially healthy?

What are the financial health indicators

Analyzing your financial health are different for the different segment of people according to their field. A computer IT expert does not worry about the decision made by supreme court today, because it’s out of his business.

Financial health indicator

Below is the category of segments, I am sure you are one of any category, you must aware of your financial health indicators.

Employee financial health checkup

Being an employee is a very difficult job to give your precious time to some else and being a part of making his dream come true.

Also Read: 10 Best Part Time Side Business Ideas for 2018 – (Work From Home)

Its tuff but the reality, if you are doing a difficult job of employment, are you paid well?

Every employee grabs their own answer for that, but

whatever we are paid, we are in financial shape?

After spending fix amount of money in your EMI’s, monthly expenses, all of us manages the rest of our money as savings.

There are different segments if we talk about an employee about where we keep our money:

  • Saving bank account
  • Fixed deposits
  • Insurance Policy
  • Cash in hand

Do you define this planning as financial fitness?

Yes/No.

Being an employee it is highly important to keep your financial health in shape eventually you have to beat inflation too.

Majority of the people forget to get a good life insurance policy just not for cash back but to secure your family for a bad time.

We are not in the position to control our fund incoming, what was the different segment,  we will discuss in another article.

The question is:

How to improve the financial health

There are some points which will definitely help you out for resetting your process of achieving your goal.

  1. Never keep all your eggs in one bucket, you must diversify our savings, keeping all your investments in one form will bring you to unavoidable circumstances.
  2. Keeping all your money in the fixed deposit is the safest way but your investment is in the hands of the bank and you can not withdraw the money unless you pay penalty for withdrawing your own money. You all are aware the interest rates are going down.
  3. Always grab a term policy for your life insurance, Is Term Insurance better then Life Insurance although life insurance plan will secure your life as well as pay you back the money, if you go in depth you are payable fare more in life insurance then of term insurance.
  4. Like your EMI’s you are bound to pay the sum amount to the bank or any financial institutes, have you ever think of how saving and investing make you a millionaire? , investing money in the proper way like SIP in mutual funds or equity market with proper fundamental knowledge get you nearer to your goal.
  5. Income tax awareness for the employee and the proper use of tax exemptions is very important that will save a lot of money which was paid to income tax department rather you can invest for your own interest.

Being an employee above points will help you implement from today itself and become your own financial health mentor.

Financial health check-up questionnaire

Question 1: Why is it important to keep our finances healthy?

Answer: Keeping your financial health in shape is important due to compete for the inflation and everybody frame some financial targets or goal. Proper financial planning brings you to the target and also your investment plan plays a second source of income other than your core source.

Also Read: 5 Ways to boost your investment returns

Question 2: How taxation improve financial fitness?

Answer: Taxation plays an important role in your financial planning, if you act smartly you can play income tax department and take all the benefits available under section 80C and you have never taken taxation seriously, you yourself destroy your financial planning.

Question 3: Is mutual fund a good instrument to build your portfolio and how?

Answer: Mutual fund now a day is a growing platform with the guaranteed return (taking time frame into consideration), if you select the mode of SIP (systematic investment plan), you are definitely building your own wealth.

Selection of perfect mutual fund according to your goal is also an art, you must aware of some of the things like past performance, group of companies in the mutual fund, nature of an action, fund manager and many more.

Question 4: Should we opt for equity market?

Answer: Equity market is one of the best financial first-aid boxes to drag you out and improve your financial health, but there are several things you must know about:

  1. Selection of stock is one of the important strategies to get the foot on the first stair. Selection of company depends upon the market condition, demand, and supply, future growth, company financial results, management efficiency.
  2. Keeping in mind never invest all your amount kept for equity market in one share at a time and never sell the shares at a time, you must invest slowly and frequently when the shock comes to the right level, putting all your investment in a single term, you have to face losses.
  3. Try to opt for a company with the good dividend yield, in this strategy you will get a good amount of interest amount other than the growth of the company.

Sometimes, we require a little shuffle in our portfolio, and get your financial health reset, these simple steps will definitely improve your savings.

I am very much sure for everyone to get some or the other benefits after reading this article.

Author Profile

Amit Bansal
Amit Bansal
Hey, Amit Kumar Bansal, the man behind this blog. I always passionate about Taxes, Stock Market. This was one of the reasons why I have chosen the field of account. Blogging was not the coincidence it was a proper decision. The main aim of this blog is to help readers to take an informed financial decision. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

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