Just as you fall sick and you go for check up, so must you do same to your financial status.
May around the world are financially sick, yet they do not know. Others do but yet do not know how to over it.
Here, MyLifeGuide brings to you tips on how to stay financially strong.
Firstly -Check and Understand Your Assets and Liabilities; In simplicity, the assets you own and the debts or liabilities you have determine your net worth. In other words, what you own versus your debts shows how much you possessed, hence your financial health status. Assets might include cash, savings, stocks, bonds, retirement accounts, real estate, and anything else of value such as cars or collectibles. Liabilities might include a mortgage, student loans, auto loans, bills due, and credit card debt.
Secondly- Your Goals or Targets Assessment Is A Factor; Checking your long, medium and short term goals are very key in knowing your financial health status. You should know if your are on track to achieving them or not. By so doing if you are not anyway close to achieving them, you will be triggered to work harder toward them.
Thirdly- Paying Taxes; Your ability to settle your tax bills well before the annual deadline defines your financial health status.
Fourthly, Check Your Investment and Goal Agreement; You must as well check your investment and the goals you set for yourself if they are in line with each other. If no, then you are sick in that regards.
Lastly, Check Your Insurance Status; You need to check whether you have the right insurance for yourself or not. Once a year it’s important to assess the type and amount of insurance you need. For instance, if you rent your home, you may want to consider renters insurance to protect your belongings.