Are you Financially Fit? Take the Test

2016-11-12   minute read

Lifestyle Debt

More and more we hear about people talking about being physically fit. Whether it be on the radio, television or social media, there is this buzz surrounding the value of being “fit”.

Two people crunching numbers on a laptop with a notebook on the table

But how many people are talking about financial fitness? The conversation of money usually makes people feel uncomfortable. At the end of the day however, the fact is that with job instability and the rising costs of living, now more than ever, individuals need to take a look at their finances and make sure all is in order.

Consider below a list of questions to put your financial fitness to the test:

  1. Do you have a Will in place? When did you last update it?
  2. Do you have sufficient life insurance in place with a named beneficiary? Is it sufficient to adequately cover the living expenses of any dependents you have if you should pass away?
  3. Do you save 20% of your net income each month?
  4. Do you have approximately six to eight months of net income saved? This would be to cover your household expenses in the event you lost your job or for one reason or another, were unable to work.
  5. Do you have RRSP’s? Are you regularly contributing to these each month?
  6. Do you have an education fund for your children with regular contributions made to it?
  7. Is there a monthly budget in place? Are you monitoring it?
  8. Are you paying your debt each month with the balances being reduced or are you becoming more reliant on credit to meet your expenses.

If you have said no to a number of the items listed above, you are not alone. Many individuals have never considered the importance of having a plan in place. It is never too late to get started. And just think of how good it will feel to know you are in control.

However, if you are struggling from one debt payment to the next, it can sabotage any efforts you are making with having financial fitness. The first approach is to take stock of your debt and find the best solution to resolving it. Once you have a comprehensive and manageable plan in place, you can move forward with achieving the other items on your financial fitness list.

If improving your financial fitness is a goal for you but you do not know where to start because managing your debt load has become overwhelming, MNP can help. We offer a free, no-obligations consultation where we will meet with you in person, review your unique financial situation and develop a plan that will help you achieve your financial fitness goals.

To learn more about how MNP Debt can help you, contact any of our local offices at 905.937.0002.

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