How To Check Your Financial Fitness

By BankBazaar | November 28, 2017

While your physical health is of utmost importance, your financial health is an indispensable part of your life as well. Are you financially fit?

How To Check Your Financial Fitness

When was the last time you went for a medical check-up? We hope you aren’t one of those daredevils when it comes to important matters like your health. Health is wealth after all!

Keeping that in mind, we would like to remind you that while your physical health is of utmost importance, your financial health is an indispensable part of your life as well.

While there are many things you can do to improve your physical fitness, like exercising or going to the gym, there are things you can do to keep you financially fit as well. Simple things like paying your Credit Card dues on time, maintaining your Credit Score, making the right investments etc all play a part in maintaining your financial fitness.

Here’s how you can check your financial fitness:

  • An Emergency Fund. Sounds Familiar?

An emergency could be anything. From a sudden job loss to an accident, to any other incident in your life that needs immediate financial support. To deal with the expenditure that follows in the aftermath of such events, building an emergency fund is an absolute must. In short, it acts as a financial safety net that will keep you afloat financially when things go awry.

Additional Reading: How To Build An Emergency Fund
  • Do You Pay Interest On Your Credit Cards?

Credit Card interest rates are quite high! If you’ve used one, you’ll know what we are talking about. But don’t worry, there are ways you can avoidhigh interestt rates. All you have to do is pay all your bills on time. And don’t just limit yourself to Credit Card bills. Try and pay every other bill, like your electricity bill, water, telephone etc on time as well.

Another golden rule. Try paying off your entire Credit Card balance as much as you possibly can. Making only minimum payments on your Credit Card will only sink you deeper into debt. This balance is what attracts all that high interest and screws up your monthly budget. We agree that Credit Cards are convenient, but you also need to keep them from becoming a menace.

Additional Reading: 7 Ridiculously Simple Ways To Pay Your Credit Card Bills
  • Do You Have Term Insurance?

If you have a set of dependents who rely on you and your well-being, you can’t place them at risk if something untoward happens to you. This is exactly why you need to plan ahead and get a Term Insurance plan.

Before signing up for any other Life Insurance policy, just ensure it makes complete sense for you according to your needs. It’s easy to lose focus and get confused. Don’t let that happen.

  • Do You Have Health Insurance?

Accidents can happen anytime, especially when we least expect them. You can’t do much to avoid them, but you can certainly be more prepared. Getting the right Health Insurance plan, therefore, should be a top priority. It can help you handle those excessive medical and treatment bills during trying situations, so you won’t have to dip into your savings.

Additional Reading: 7 Tips To Compare Health Insurance
  • Where Do You See Yourself In A Few Years?

After working so hard for so many years, what do you ultimately plan on doing? How do you plan on spending the golden years of your life? In case you haven’t given it much though, now is the time to start planning.

Planning for your retirement is more than just having a rough idea of where to go and what to do. You’ll need to think about the financial angle as well. You need to manage your finances in such a way that they can accommodate your future plans.

Additional Reading: Financial Moves You Should Make A Few Years Before Retirement

If you’ve answered positively to most of these questions, the vast chunk of your work is done. If not, then you at least have an idea of how fit you are financially.

What do you do after assessing your physical fitness? You make a diet chart and exercise schedules and start acting on it. Similarly, in the case of financial fitness, you need to come up with a sound plan and budget yourself accordingly. In both cases, however, discipline is extremely important.

In the meantime, you can have a look at our fascinating Credit Card offers and focus on building your Credit Score.

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Category: Credit Cards Credit Score
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