There are a lot of conversations these days about achieving total wellness: physical, mental, emotional and financial. This is a great goal for any individual, as it encourages you to focus on a variety of elements that impact your overall well-being and quality of life. Think of it like putting together different pieces of a puzzle. It takes some effort, but the end result can be very gratifying and remind you why you got started.
Today, we’d like to talk about how to assess your own financial health while defining what it means to be a “financially healthy” person. Ask yourself these questions and think honestly about the answers you come up with. If you’d like to discuss any of these points in more detail, please reach out to our team. We’d be pleased to hear from you and offer personalized guidance as you work toward your goals.
Do you earn more than you spend?
This is a simple rule that applies to your budget and can help assess your financial wellness. Look at how much money you earn in a given month (and any earnings from your partner, if sharing household expenses). Compare this amount to your monthly expenditures, both fixed and variable. Are you earning more than you spend? Is there room in your budget for saving and investing, covering unexpected costs and allowing some discretionary spending? Being financially healthy doesn’t mean being wealthy, necessarily, but it does mean being secure. Understanding your budget is an important measure of this goal.
Are you planning and saving for the future?
Having enough money to get through the month is a great start, but are you able to save and invest in your future? This may include saving for a down payment on a house, putting money into a TFSA or RRSP, or saving for your child’s education in an RESP. It should also include servicing any debt you have to help strengthen your long-term financial situation. Finally, it may involve insurance options to help protect your income and/or your family. An advisor can help you strategize, get the most out of your income and make smart choices.
When you talk about money, do you feel peace of mind?
Regularly feeling money-related stress is a sign that there’s room for improvement in your financial plan. This is where expert advice may come in handy, either to provide advice or offer simple reassurance. After all, feeling financial stress isn’t always a sign you’re in rough shape — it may just mean you’re dealing with uncertainty. An advisor can help identify gaps or weaknesses in your financial plan and make recommendations to help you achieve your short and long-term goals. This expertise is often key to achieving financial wellness — an important part of your total wellness plan.
Please contact us if you’d like to speak to an Interior Savings advisor in your region. Thanks for reading, and take care!