Welcome to FinHealthy!
The goal of FinHealthy is to help you improve your financial health and education. Finances shouldn't be intimidating.
You should be comfortable and confident in your financial life!
What is Financial Health?
If you asked ten people, what does it mean to be financially healthy, you would probably get ten different answers.
For some, financial health means living within your means, unburdened from major debt, and saving for the future. For others, it might mean having significant savings, being debt-free, and having the ability to buy the things they want.
The Financial Health Institute defines financial health as: “The dynamic relationship of one's financial and economic resources as they are applied to or impact the state of physical, mental and social well-being.”
I have absolutely no idea what that means.
What Does It Mean To Be Financially Unhealthy?
It's easier to describe what an unhealthy financial life looks like.
- spend more than you earn?
- frequently pay bills late?
- carry a balance on credit cards?
- lack the funds to cover emergencies?
- suffer a low credit score?
- have little, or nothing, saved for retirement?
- lack protection from a health event?
Growing up my barber was a rather large man, and I still remember the sign he had in his barbershop. It said, “I may be fat, but you're ugly, and I can diet.”
I still chuckle when I think of that sign.
I used to have a very unhealthy financial life. Here is a post on my worst money mistakes.
No matter what your financial situation is, it can get better. But it won't get better on its own. You have to put in the effort.
Improve Your Financial Health
If you are ready to put in the effort to improve your financial health, you have come to the right place. Dominate these nine areas of your financial life to a happier, balanced, and confident financial existence.
Increase Your Income
Income is the oxygen of your financial health. Like breathing in oxygen, you need to constantly bring in more money. Living without income is similar to living without oxygen. You are not going to get very far.
To improve your financial health you might need to increase your income.
Balance Your Budget
Oh no, the dreaded budget! For some, budgeting sounds like a diet for spending. The first image that comes to mind when I think of dieting is those tasteless rice crackers. So, I don't blame you if you get a dry stale taste in your mouth when you hear the word “budget”.
It doesn't have to be that way. Budgeting is simply living within your means. Budgeting is spending less money than you earn. It's taking the money that you worked hard to make and allocating it to the things that you value the most.
For those that still hate budgeting, I recommend getting a spending plan.
Do you ever wonder where your money goes every month? You're not alone. Many people spend money without ever thinking about it. They occasionally look at how much money they have and wonder where it all went.
My goal is to help you understand where your money is going. To be financially healthy you need to reduce spending on unimportant expenses and focus on spending that matches your values.
I hate debt. Debt is borrowing money, and borrowing money isn't free. You have to pay interest! By using debt to finance your purchase, you might end up paying several times over the original cost.
Living a healthy financial life means being in control of your debt. Pay off your credit cards. Get rid of your student loans. Don't take on new debt.
According to a recent GoBankingRates survey, more than half of Americans have less than $1,000 in their savings account. Without an emergency fund, reserve account, or rainy day fund, unexpected expenses can have a devastating impact on your financial health.
Lack of savings in reserve is a leading cause of financial stress. When surprise expenses occur you might feel that your situation is hopeless.
Having adequate savings is the opposite. A strong savings account reduces stress and builds confidence that you can weather financial storms.
Invest for the Future
Investing is all about having your money work for you. You invest money and then that money makes money. Rinse and repeat.
How do you invest? What are the risks? What about expenses and fees? How do you buy stock for yourself? How do you buy stock for kids?
Our goal is to answer these questions and more. Investing is a cornerstone strategy for reaching your financial goals.
Adapt to Life Changes
Life isn't linear. Maybe you moved cross country, got married, had two girls, and left your consulting career to start your own business. (That's my story.) Life changes and you have to adapt your financial life to match.
Protect Against the Unknown
Unfortunately, bad things happen. People get sick, they get hurt, and they die. By preparing and planning for these potential events you can protect your family and future.
Master Your Plan
Step one, make a plan. Step two, master your plan.
Planning is all about figuring out where you want to go and then taking the steps to get there.
The goal of FinHealthy is to help support your financial health and guide you along the way.