What is Financial Health?

Hey Readers! How are you all doing? I hope you had a fantastic day and staying hydrated? If you are, then well done.

Today, I was reading some crypto news. I saw one that made me smile; the article described how Russian oil companies planned to mine cryptocurrencies in their wells. 

At first, I was confused about how they would do this, but when I read further, I found out how they would do this. It is very innovative; I wonder who brought up the idea.

I have already put the link to the article, so you can go ahead if you want to read it. 

For today's article, I will be continuing from yesterday's topic, "Health." 

But I will be focusing more on one form I listed yesterday, "Financial Health".

I was inspired to write this because of @Greatwolfman comment on my previous post; he said

"I believe that worrying is independent of your financial status. I think the rich worry more about trying to maintain their wealth than the less wealthy people. He that is down fears no fall."

I completely agree with him because you still have your insecurities and fear, no matter how rich you are.

There will be the fear of losing all the money, and not meeting your needs will always be at the back of your head.

You may think rich people don't have their fears, but they have more insecurities than the average person; as he said at the end, "He that down fears no fall." This quote means that a more affluent person has much more to lose than someone who has nothing.

But that doesn't mean that regular people have fewer insecurities than affluent people.

Poor financial health can affect you both physically and mentally. It puts both you and those you love at risk because you have little or no money to provide for your day-to-day expenses.

There is no proven method to measure your financial health, but various areas make up your overall financial health; let us check them out.

• Insurance

• Debt

• Credit

• Retirement

• Credit

We will look at each of them to further understand what they stand for in financial health. I am sure you may have already figured out what the list means, but let me explain it further.

Insurance: When you hear insurance, what comes to your mind? I am guessing you thought a financial backup from risk. 

Insurance is essential in financial health because it helps keep your mind at rest from major medical expenses and accidents. After all, the insurance company will handle them. Without insurance, you would go bankrupt because of some unplanned event that will probably cost you a fortune.

Savings: If you look at someone with sound financial health, you will notice that most of them always have money kept somewhere to be safe. This is called thinking for the future or saving in standard terms. 

Most individuals keep the money for essential goals they are pushing to achieve; sometimes, they keep emergency savings or long-term savings depending on what they want to use them for.

Retirement: If you don't have or keep the money for your retirement, you will regret it later; most people never leave money for their retirement or older years. 

An adequate retirement plan will give you a target date to stop working, so you can live the retirement life you wanted. If you plan to have a fantastic retirement one day, I recommend you start putting money towards it because time won't wait for you.

Debt: Most people focus so much on buying goods on credit, forgetting they would have to pay for it in the future. 

I remember watching a movie/documentary where a man said, "He spends more than he earns." I was wondering how this was even possible. I found out he actually had tons of credit cards to pay, which made him commit suicide later.

Don't swim in debt; I don't know where I saw this quote, but it said,

"The more you owe people, the poorer you are, but the more people owe you, the richer you are. There is truth in this quote.

Credit: People with peak financial health always maintain their credit balances because they know the consequences they would face if they don't. They only borrow when they have good credit and know they have the means to pay it back.

How to spot Bad Financial Health

If you seem to be having financial stress, then there is a high probability you are suffering from poor financial health. This could affect your mental and physical health, so you must solve the problem before it escalates.

Here are some signs you would begin to see when you have poor financial health.

• You don't have a budget, so you don't know how much you spend.

• You worry about money several times a week.

• You have a high credit balance.

• You don't have savings.

If you have any of them listed, you should not worry, but instead, focus more on how you will change it and come out of the problem. It is never too late.

Instead of gambling your future, invest more in things that would improve your financial health, and one day you will surely achieve financial stability and freedom.

Thank you for reading; if you like the content, leave a comment if you have any, I will catch you in the next one but for now. Bye!