It's not just your physical health that needs care for; your financial health matters, too! So, what exactly does a healthy financial status look like?
Simply put, your financial health depends on how well you manage your monthly income and expenses. Not only that, but your daily lifestyle choices also play a big role in shaping your financial plan.
So, what are the signs of poor financial health, and how can you avoid them? Let’s explore the signs of unhealthy finances below! Do any of these sound familiar to your current situation?
If you’re doing the things below, it might be a sign that your finances are not in great shape!
A hedonistic lifestyle disguised as “self-reward” often leads to poor financial management. Why? Because you end up buying things—whether it’s food, items, or experiences—that aren’t urgent or necessary.
These days, there are plenty of cute cafes, concerts of your favorite artists, and adorable accessories that are hard to resist. Now, there’s nothing wrong with treating yourself to all these things.
But the question is, do you have enough income and savings to afford these temporary indulgences? Instead, money that should have been allocated for essential needs ends up being spent on your lifestyle.
Credit cards can actually be an excellent tool for managing your finances. Especially now, with plenty of benefits like cashback, promotions, memberships, and more.
But all these perks mean nothing if you’re overusing your credit card! Remember, credit cards are essentially “debt” that you have to pay off each month. Ultimately, overusing your credit card can become a whole new financial issue.
If you can’t control your monthly credit card usage, it’s a sign that your financial management needs adjusting. You’ll end up paying even more in monthly installments than usual.
How can you achieve financial freedom if you don’t have savings or an emergency fund? It’s tough if you have an expensive lifestyle.
A key sign of good financial health is that you don’t have to worry about unexpected events in the future—whether that’s getting laid off, getting sick, or having an accident.
Not only that, having no savings or emergency funds is especially risky for those of you who have a family. An emergency fund is essential for covering your children’s education, insurance, or even daily needs.
Another sign of poor financial management is the difficulty paying your monthly bills. The leading cause is often prioritizing “wants” over “needs.”
As a result, your debts might pile up, and you’ll find it harder to meet your monthly obligations. Paying bills is a necessity that should always be covered every month.
If you let this habit continue, you might end up experiencing ‘galbay’ or defaulting on your payments, which will damage your credit score evaluation and make managing your finances even harder in the future!
Ever feel like your paycheck just flies by? It comes in, and then it’s gone just like that? That’s a clear sign that you don’t have a proper money plan!
Without a clear financial plan, your monthly salary will always feel like it’s never enough—especially if you don’t have good money management. So don’t be surprised when your balance shrinks right after payday, because your money isn’t given a clear purpose!
Already noticing the signs of poor financial health? No need to panic—you can still turn things around with these tips!
One secret to healthy finances is having a good financial plan every month. This is especially true for those of you in the sandwich generation—you need to manage your salary extra carefully.
You can use various methods to manage your finances, like money management apps, spreadsheets, or even doing it manually in a notebook. Make sure to record every detail of your monthly income and daily expenses.
The goal is so you’re not left wondering, “Where did all my paycheck go?”
Managing your income and expenses is closely tied to setting priorities. You must determine which expenses should be prioritized and which can wait.
Prioritized expenses include daily necessities, credit card bills, education costs, and other unexpected expenses. Beyond that, you can also budget for fun things like dining out, vacations, and more—just make sure these don’t take up more of your budget than the essentials!
The saying "A penny saved is a penny earned" is very relevant to fixing unhealthy finances, especially if you have many obligations to cover.
While you might not be able to follow everyone else's lifestyle, at least you can maintain healthy finances and avoid taking on more debt. Trust us—you’ll be able to save a lot more in the long run!
Having debt isn’t a problem as long as you manage it effectively. Make sure you record all the debts or bills you need to pay each month, along with their due dates.
For example, when paying off credit card bills, you can record them and pay them manually each month, or activate the auto-debit feature to ensure you don’t miss a payment. If possible, try to pay off your credit card bill in full to avoid extra interest. With effective management, your bills will always be paid on time.
And the good news? All your fees will be refunded if you use the Honest credit card and pay your bill in full and on time. So, using the card is totally free!
Finally, remember to check and evaluate your expenses each month. Based on your priority scale, look at what can be reduced or even eliminated.
Historically, tracking expenses can be a hassle, and it’s easy to miss a few transactions. But don’t worry about forgetting where your money went when you’re using the Honest credit card. You can track your expenses in real-time after each transaction through the Honest app. This way, you can evaluate your daily and monthly finances more effectively!
If you’re still noticing signs of poor financial health in your daily life, then it’s time to evaluate! Don’t let poor financial management continue unchecked. Let’s start implementing good and effective money management today!
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