What does good financial health mean? The key metrics for a check up
What does good financial health mean? The key metrics for a check up
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From debts and pensions to savings and insurnace, the personal finance questions to address as we go into a new year. As we wave goodbye to 2024 and start a new year, now is a sensible time to take stock of our finances. Becoming financially healthy may be a popular New Year’s resolution, but before we can take steps to make this happen it’s important to clarify what this means in practice.
Ultimately, you want to ensure you are earning enough income to maintain your standard of living and also save and prepare for the future. But experts warn money isn’t the ultimate goal – it is a means to an end if you want to be financially healthy.
Ranald Mitchell, director of Charwin Mortgages, says: “Financial health isn’t about wealth, it’s about balance, resilience, and creating the security needed to thrive in the present while preparing for the future.”. To make things simple, here are the six questions to ask yourself to ascertain whether you are financially healthy – and where you may need to do some work in 2025.
There isn’t necessarily anything wrong with having debt, so long as it is manageable. Most people’s largest debt is their mortgage but you may also have a personal loan or credit card. The important thing is to ensure you can afford the repayments and don’t borrow too much or overstretch yourself.
