20 Steps to Financial Health: Achieving Lifelong Financial Fitness
13. Start a savings plan
Reaching your financial goals requires a strong commitment to saving. That is one reason saving is an essential part of achieving financial health. You should plan on committing to a 10 percent savings plan.
If you are having trouble establishing a nest-egg, don’t despair.
The following are some simple ways to boost your savings:
• Direct deposit – most employers offer this convenience
• Cutting back where ever possible
• Having a garage sale to get rid of unwanted items
• Even consider a part time job
14. Protecting your assets
One of the best ways to care for your family and achieve financial health is to be sure that you are prepared. The following are four critical policies to review and consider to help ensure protection for your family if something were to happen to you or another member of your family:
• Review your health insurance policy and ensure there is adequate coverage
• Auto policy
• Life insurance
• Disability insurance
15. Managing major purchases
Do you have a major purchase coming up like a new car, a home or possibly even a new television? No matter what you are thinking of purchasing, planning, preparing and managing a major purchase is part of achieving financial health. Prior to making a major purchase review the following:
a. Financial goals – Make sure you have included your major purchase in your goals and plans to pay for your major purchase
b. Budget – can your budget support this purchase?
c. Cash flow – Do you have any cash to put towards your major purchase?
d. Accessibility and availability of credit – Are you in a strong enough financial position where you will be granted credit with reasonable terms?