I’m very concerned about your “Financial fitness” because it directly affects your physical and mental health. Setting long-term financial goals, paying off debt, and beginning to save, may ease overall stress in your life and prevent avoidable health problems. Feeling that you are in control of your finances is truly empowering.
Keys to prosperity and financial health include monitoring spending, building cash savings, reducing high-interest debt, and having proper insurance. I agree with Thomas Stanley & William Danko, authors of The Millionaire Next Door: “Financially independent people seem to be better able to visualize the future benefits of defining their goals.”
Here’s an eye-opening wake up call in the form of a short reality-check questionnaire:
Wake-up Financial Questionnaire (answer Yes or No for the following questions)
- Do you know your monthly cost of living?
- Do you know if your home mortgage interest rate is competitive?
- Do you know the interest rate in your credit cards?
- Are your insurance premiums competitively priced?
- Is your insurance coverage adequate?
- Do you know how to consolidate your debt using your home equity?
- Do you know income tax bracket?
- Do you have money to invest but don’t know where to start?
- Is your stock portfolio balanced?
- Do you have investments goals?
- Do you have or plan to set aside money for your retirement?
- Do you know about the advantages and differences of IRA, ROTH IRA, and KEOGH accounts?
- Do you know the difference between tax deferred and tax exempt?
- Are you getting motivated to save more than you spend?
Building a healthy “financial house” can take a lifetime. For “financial fitness”, I encourage you to develop a financial plan and obtain help with money management. Some personal secrets to prosperity I have learned over the years:
- Money should not rule all decisions. Remaining in a job or relationship solely because of economic security is not worth the stress that comes with it.
- Don’t eat the turkey today and the feathers tomorrow!
- Abundance is more than money.
- The wealthiest person on earth is the one who needs the least.
- Prosperity is also an activity of the soul.