Check !! Are you Healthy Financially?

How often have you stepped on the weighing scale, counted calories via some app, or used activity trackers to keep a tab on the number of steps you’ve taken per day? But just as you monitor your overall physical condition to make sure your health is on the up, you should also do the same for your financial well-being.

Here, we’ve listed 5 vital signs that can help gauge your financial health. If you answer “No” to more than a couple of them, it's time to take a step back, reassess your financial circumstances, and take action to turn the tide.

#Sign 1 – You have little or no debt

Credit cards and other loans can put what you want within your financial reach. But repayments can stretch your monthly budget beyond a comfortable limit. Reducing or eliminating that debt altogether can free up money which you can then use for emergencies, investments or home improvements.

#Sign 2 – You can pay for monthly expenses with just your 70% income

Are you married, and are both you and your spouse are earning? You’re in excellent financial shape if you can cover fixed monthly expenses like utility bills with just your or your spouse’s income. The second income can be used for savings or future planning. In case you are not married or your spouse is not working, your monthly expenses should be with 70% of your monthly income

#Sign 3 – You pay your bills on time

Do you prefer to be ahead of your finances rather than behind? You’re in a healthy financial situation if you always have enough money to pay your bills on time. This also means that you won’t lose sleep over your finances. Why? Because when you go to bed every night, you will know that all your bills are paid and there’s money left over for other monthly expenses, and all's right with your world.

#Sign 4 – You have an adequate emergency fund

When life throws nasty financial surprises such as a major auto repair, a serious health challenge or job disruption your way, a sufficient emergency fund (around six months’ worth of expenses) which can help you tide over the crisis. Otherwise, you may end up borrowing to cover the tab. This can throw you into a cycle of debt and financial insecurity, making it difficult for you to save.

#Sign 5 – Your net worth is growing year after year

Your net worth is seeing fairly consistent growth every year. This should be as a result of growth driven by a combination of your savings, regular contributions to your investment portfolio and good investment returns.

#Sign 6 – Long Term Finance Planning

In case you are in 10+ years in corporate, you should be planning your for your longer term as well. Seeing the market risks and volatility, jobs are always insecure and more so with increasing experience. One should definitely be planning this aspect. Idea is about developing personal equity in life and having our investments working for us. Goal should be to replace your complete family and personal expenses with your Secondary Income.

In case, there are a few "No"s for the above, it means you are not financially secure as yet. You are never too young to start planning for the future. The stakes get higher once you begin to build a family. Don’t wait until later on down the road to start thinking about these things.

Take adequate actions before it is too late as it is always advisable to 'Dig the Well Before you are Thirsty'. Good Luck !!