: How to know if you are Financially Fit

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(420 Words)
It is important to be financially fit. There are different characteristics of being in this state, including the following.
Can you pay your bills?
Someone who is financially fit can pay their bills. If you are missing a lot of bills, then this could be a problem. You should not be spending so much that you do not know where the money is going to come from. Your credit cards should not be declined. You should not be losing things because they are getting repossessed. If you are easily making your bills then you are more likely to be financially fit. If you are having difficulty with this, then you will either need to increase your money intake with a higher paying job or another source of money or spend less.
Do you have a lot of debt?
If you have a lot of debt, you are less likely to be financially fit This is especially true if it is not a good type of debt such as credit card debt. Also, if you watching a lot of money go down the drain in interest payments then that is not good. If you have creditors calling because you are not meeting your minimum payments, then that is a bad sign as well.
Are you saving?
Chances are there will come a time when you want to retire. You may have other big expenses come up such as a house, a car, a wedding or a child’s education. You are more likely to be financially fit if you are saving money for these things. You should have a strategy whereas some money is going places such as retirement accounts and other money saving strategies. Someone who is very financially fit might have their financial matters planned out. They may know how much they will need in the future and be working towards it.
Do you have money for a rainy day?
It is important to have some money stowed away for a rainy day. You do not want to start missing rent payments and possibly get evicted if you lose your job. Other financial emergencies can and do emerge such as medical costs, car accidents or more. If you have some money saved to weather these storms you might be more financially fit.
The best way to start to get financially fit is to make a budget. Try to make it that you are saving and reaching your financial goals. Consider the above strategies to know the condition of your finances.
Updated On: 07/28/2010 Published On: 07/28/2010 Article ViewerClose
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