Financial health is the state of personal finances and encompasses various dimensions viz. spending, savings and creating a safety pool for retirement expenses and medical care. Financial health is the key to a happy and successful life. It lays the foundation for a stable and secure financial future. Wealth planners suggest outlining one’s financial goals and assigning a part of income to each–from buying a house to establishing a retirement corpus early in life.
Here are some ways of managing money and improving financial health:
Seek Professional Advice
Investment is a specialized field and more so in today’s times, given the diversity and complexity of investment products on offer. Individuals may not have the necessary wherewithal to structure and manage their investment portfolios. It therefore makes eminent sense to seek the advice of seasoned professionals with proven money management skills who can take the right investment decisions.
Get It Right
It is important to gauge the soundness of an investment prior to taking the plunge. Proper due diligence and careful consideration of risks and rewards can go a long way in protecting and enhancing one’s investment portfolio. The cardinal rule of investing, as legendary investors such as Warren Buffet and others suggest, is to stick to something that one understands.
Go For Health Insurance
Health ailments can seriously dent personal savings. An adequate health cover is an absolute must to tide over unforeseen medical emergencies. It is a blunder to rely completely on medical cover provided by employers as such medical coverage may be inadequate to deal with any serious health emergency.
Opt For A Term Plan
Death is the only certainty in life. Despite slogging throughout life, very few people have enough assets to bequeath to their dependants. A term insurance plan could make a difference between leaving behind a financially struggling family and providing them with a decent life. You do not buy a term plan because you will die, but rather because your family will live.
Plan For Retirement
Retirement planning is the creation of a decent corpus at the age of 60 that will provide financial support in post-retirement years. Planning for retirement assumes added significance in our times, given the increase in life expectancy and shorter work spans.