Like our personal health, our financial health should be given a ‘check up’ every so often.
But how do you give a physical on your finances? Is there some simple test like blood tests? Or do I call a money DR ?? Well obviously NOT .. there is no blood test for your money so good luck putting a needle into your finances, and these days most our wealth is recorded digitally so I’m not sure doing a physical on your coins would make much sense either. So what is involved in checking your ‘financial fitness’ and what do they mean? Well, there are a few characters or body parts that we need to consider looking at, that is...
Money and Mortgage
This is the big one – the size of the body the importance of the mind. A lot of your attention needs to go here. You need to look and see if you’re as financially fit as you can be or as you want to be. Could your term deposits be doing better? Are your funds working out and not getting those abs ? Is your mortgage lifting the weights but hasn’t built any strength? Can you get a better interest rate??
So what does your Insurance have to do with your financial health ?? Well, Insurance is an expense that many, most maybe all people should have. Perhaps, its paid annually, monthly or maybe from your super. In our lifetime we make changes we change cars we change houses, jobs and careers change, we make changes to our family and to ourselves, so as our life changes we need to look at whether you still have enough insurance, whether your covered for things that you no longer need? Like fitness if your 50, your probably not going to the gym so why are you paying for a membership ? When you were younger working harder or longer you may not need that income insurance that you had 10 years ago.
Planning and Superannuation
Having a plan … Do you need to change your habits? Change your workout schedule ? Often when people think of their finances they are planning for their future. But many forget that they key to their long-term goal is their superannuation. When checking the fitness of finances it is extremely important to check out and look into how many funds you have ?? do you need a personal trainer to get you to the fit level you want to be or can you consider self-managed super funds? What’s your plan with your self managed fund – do you want to consider borrowing for an investment(is that going to help your reach the peak of that hill ?
While there are plenty of other checks you can make, these are just the three of most importance. As with your physical health, it’s worth talking to a trusted advisor about them from time to time, even if it’s just to get the all-clear.