Signs You Are Financially Healthy (MNP 3 Minute Debt Break)

2023-07-05  3 minute read

Lifestyle Debt


e visit and talk to doctors and other professionals about our health regularly. Or we should. Just like we should talk with professionals about our financial health. How can you tell if you're financially healthy? There are some signs that can help you assess your financial wellbeing.

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Being financially healthy means you are not just getting by, but rather, making progress towards stability and security. It requires attention, fine-tuning, and continuous effort. One area that should never be neglected is budgeting. 

A sign of financial health is the habit of budgeting and monitoring your spending regularly. It's about knowing your income, your expenses, and having a plan for each dollar. If you're sticking to your budget, saving for emergencies and big-ticket items, and adjusting when necessary, you're on the right track.

Another area of attention and review is wise credit card use. No… it's not a bad thing to have a credit card. But it's important how you use it. Are you paying off the full balance each month? Are you using your card for budgeted expenses only? If so, that's a good thing and a smart way to use credit  cards. 

Next is savings. Financial health isn't just about the present but also the future. You should be saving a portion of your income, maybe for an emergency fund or for specific goals, like a new smartphone or a down payment on a home. Regular savings habits can help you steer clear of debt.

The fourth area to review and ensure you’re in a healthy financial state of mind involves retirement planning. Are you putting money aside for the golden years? Are you contributing to a registered savings plan or using a pension plan? Do you aim to retire debt-free? If yes, then these are all signs of good financial health.

Lastly, your credit report is a good indicator of financial health. You should  know your credit history and understand the factors that impact it. Check your report for accuracy and aim for a good credit score. This will enable you to get loans at reasonable rates.

Recognizing these signs in your financial life is crucial and remember, you're not alone on your financial journey. If you're struggling, take advantage of resources like the MNP Debt Website. If you need more personalized assistance, MNP Licensed Insolvency Trustees can provide a Free Confidential Consultation to review your financial situation and discuss options. Financial health is within reach, and the right tools and habits can get you there.



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