In today’s times, one’s financial health is as crucial as his/her physical or mental health.
Financial health refers to an individual's potential to meet any emergency financial crisis without hampering his/her daily lifestyle.
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Factors like stable income, low debt, and consistent retirement investments may be an indication of a strong financial health, whereas inconsistent income, huge load of debt, or a lack of an emergency savings fund may wreak havoc on your financial health.
So let us look at five most important reasons why your financial health must be prioritised in this year:
- Financial Emergencies- Uncertainties prevailing around us are increasing day by day. In such a time, one can only be financially sound if they have an emergency fund, which doesn't bother their day to day expenses.
- Lifestyle Inflation- Lifestyle inflation happens when your spending gradually increases over time as you desire a more luxurious lifestyle. It usually occurs when your income increases over time, and you increase your spending to keep pace with that rising income. It might be a good time to relook at your spending habits and only spend on things that bring value to your life. Lifestyle inflation can be reversed if you notice that you've succumbed to it. Staying in control of your finances is crucial to maintaining a good financial health.
Also read: What is Lifestyle Inflation? 5 Ways to Avoid It
- Retirement Planning - Some of us want to work our entire lives, while others want to strive hard for a few years and relax for the rest. But, in both the scenarios, retirement planning is crucial. If you haven't started, this year is the time you intervene in your incomes, savings, investments, returns, debts, credits and come up with a reliable retirement plan.
- Credit Score - One’s credit score is a direct resemblance to their financial health. A good credit score can act as an aid and let you borrow as and when you require it and also provides you with easy access to credit cards and facilities. In the new year 2022, make sure you are climbing up the ladder of financial health with a good credit score which also means paying off your debt on time, if you have any. It also means restricting oneself from getting into the debt cycle.
Also read: Credit Score vs Financial Score - How Are They Calculated?
- Inadequate Savings- Being at your top-notch finance game isn’t a one night process, it requires healthy and sound financial practices that can be followed daily. And this calls for savings that don’t include debt and are purely for different kinds of goals in your life.
To achieve good financial health, planning is essential but more importantly, it's the way you execute your plans into actions and watch your money grow.
The better your financial habits, the better will be your Financial Health, and the more will be your Financial Wellness score on the Wizely app and the more rewards you are likely to earn every day with a chance to earn a mega bounty of up to Rs 25 lakhs every Wednesday!
So what are you waiting for? Download the Wizely app and start earning financial rewards for good financial habits.