As we head into the new year, you may be focused on improving your health. Your physical health is extremely important, but don’t forget about your financial health! What is financial health? It’s a measure of your financial well-being, including your ability to meet financial obligations.
Here are four reasons you should focus on your financial health:
- Personal finance is unavoidable. Everyone must pay for food and necessities. Paying for those things requires making decisions about your money – aka personal finance!
- Knowledge is power. Understanding your money coming in (income) versus money going out (expenses) will help you make the right decisions. Buying a car? Knowing that your current income exceeds your expenses by $250/month will help you pick that Toyota over the BMW. Without that info, you may make the wrong decisions.
- Ability to meet unexpected expenses. Short-term financial planning will help you pay for those big-ticket items, repairs, etc. that always seem to pop up at the wrong time. By finding ways to stash some extra cash, you can be prepared!
- Financial freedom. Long-term financial planning will help you achieve your retirement dreams. Traveling the world, spending time with family and friends, or focusing on your favorite hobby, are all attainable – you just need to plan!