While large sums of money in the bank, along with investments, are great indications of financial health, the lack of them doesn’t mean you’ll never get there. When you’re following the right steps, it means that your mindset is financially healthy and that’s the biggest sign that success will follow.
1. You understand your cash flow
How well do you understand how money comes in and out of your life? When you’re keenly aware of every cent you earn and subsequently spend, you give yourself total control over your finances, which is required in order to move forward. This means keeping track of everything from how many takeaway coffees you buy per week to monitoring savings to propel growth. Once you’ve identified your goals, keeping your eye on the target, with the understanding that every little bit makes a difference, is a great sign of financial health.
The best of intentions fail to get results if you’re not spending consciously.
2. You spend consciously
The best of intentions fail to get results if you’re not spending consciously. The thing is, it’s remarkably easy to ‘turn a blind eye’ when the desire for something outweighs how much it costs. If this is something you do regularly, it’s time to readjust your mindset towards the things that hold real value. You know you’re moving forward when, instead of spontaneously spending, you stop each and every time to consider how much that might affect your overall financial plan.
There’s no doubt that budgets can be boring and have the power to instill a sense of deprivation. However, it’s all in the way you view it. In reality, your budget is a powerful tool to help you reach financial freedom. Without it, you’re simply floundering around with no way to control or measure your progress. When you’re embracing your budget in the full knowledge that it’s your friend, rather than a foe, you’re empowering yourself to succeed.
4. You save for emergencies
It’s all too common to make some progress with savings, only to see them wiped out because of an emergency. That could be losing your job, a medical issue or needing to get a new car. Whatever it is, not having an emergency fund means depriving yourself of peace of mind and the ability to deal with issues when they arise. On the other hand, prioritising this is a very good indicator of being firmly on a financially healthy path.
Seeking professional advice is a sign of financial health.
5. You seek education and advice
When you’ve kicked bad debt out of your life and saved a nest egg, how much effort have you put into educating yourself on the best ways to increase your wealth? The time to start is right now, no matter how little progress you’ve made. Seeking professional advice is the best way to make your money work for you, now and long into the future. Financial health is yours for the taking and, when you keep following these steps, you’re well on your way to achieving it.
This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879.