What does financial health mean to you? Does it mean having enough money in your bank account, having a home you can afford, having disposable income, and, most importantly, having retirement savings you can depend on?
Typically, financial health means the ability to manage your daily finances to overcome any financial difficulties, and to be on track to meet your personal financial goals. With this in mind, would you describe yourself as being financially healthy? Answer the questions in our quiz below to find out.
Do you have a monthly budget that you commit to, and do you live within your means?
Are you free of credit card debt?
Do you know how many years you have left until you pay off your bond?
Do you know the value of all your investments, retirement funds, savings accounts, and other assets?
Do you have a financial adviser you meet with regularly?
Do you calculate your own tax returns, or review them with a tax consultant?
Do you review your home and vehicle insurance frequently, and do you have enough cover in the event of a disaster?
Do you review your life and health insurance policies regularly to ensure that the level of cover meets your needs?
In the event of your death, severe illness or disability, do you have enough cover to ensure that your family can continue to enjoy the same quality of life?
Do you have a will that you update regularly, and have you appointed a trustworthy executor?
How many questions were you able to answer 'Yes' to? Three? Five? All ten? As you can imagine, the more questions you can answer 'Yes' to, the greater your financial health, and, ultimately, your security.
Improving your financial health
If you're not as financially healthy as you would like to be, don't despair! There are several behaviours you can adopt to put you on the road to success:
- Start sticking to a budget, and spend less than you earn.
- Start paying your bills on time and managing your cash flow effectively.
- Start saving towards an emergency fund.
- Start saving towards your retirement or other financial goals, such as buying a house.
- Start paying off your credit cards, store cards, student loans, and other high-risk debts.
- Start protecting your family and your assets with home, health and life insurance.
You can start many of these behaviours in your own personal capacity. And if you ever need to upgrade or update your insurance policies, Discovery Life has a range of benefits, from the Capital Disability Benefit to the Severe Illness and Income Continuation Benefits, designed to provide you not just with cover, but peace of mind as well.
The only question left is when you should start ? and the answer is today. The sooner you start practising good financial habits, the sooner you can start improving your financial health and creating a solid foundation to build your family's future on.