W hile most financial advice focuses on managing a tight budget, investing wisely, and accumulating savings, there are those of you who are in great fiscal shape and have been for a while now.

financial-health

How do you know if you’re ahead of the game money-wise though? While this is by no means a comprehensive list, you can use the following signs as benchmarks to gauge the extent of your economic success.

#Sign 1 – You have little or no debt

Whether you appreciate frugal living, or you earn a large enough income to pay off your creditors, the chances are you’re in a healthy financial situation. Debt can greatly cut into your monthly budget, reducing the amount you have to invest in assets that will yield regular returns. Therefore, the less debt you have, the better off you are.

#Sign 2 – You have your annual income in savings

If you’re between the ages of 30 and 40, and you’ve managed to accumulate your yearly salary or more in savings, you’re on the right track to increasing your net wealth. At this stage, you’re likely limiting consumer debt, you have excellent saving habits, and you’ve bought several large assets including property and a vehicle.

#Sign 3 – Your financial portfolio can withstand a loss

A large and diversified portfolio can protect you when the markets turn bad. If yours can withstand an economic hit or two without ruining your plans for retirement, then you know you’re in a financially secure position.

#Sign 4 – You have sufficient insurance

Whether you have medical aid, life coverage, home and car insurance, or policies in place for the education of your children, you’re a step ahead of most people.

#Sign 5 – In a dual-income household, you can cover monthly expenses with one salary

If you’re a married couple who can cover fixed monthly expenses with one income, and use the second income for savings or luxury purchases, then you’re in excellent condition.

Keep in mind that your standard of living may be different to others. Therefore, you should think about your current position, as well as your intentions for retirement when you evaluate your net wealth.

How do you measure your financial health? Perhaps you’d add a benchmark or two to our list. Share your thoughts in the comment section below.

Image source: charlestonsmallbizcpa.wordpress.com

Top 5 Healthcare Concerns to Kenyans

min of health

In lieu of the recent news reports of Kenyan doctors striking, we (My Health Kenya) decided to launch a healthcare-themed […]

How to maintain happiness in 10 easy steps

There are hundreds if not thousands of quotes about happiness but no matter how many words of wisdom our ancestors […]

How to help your child deal with teenage stress

Like anyone else, teenagers are faced with stressful situations all the time. Adolescence and self- discovery are just some of […]

Signs of Mental Illness

Mental illnesses are common but people are either too detached from reality or burying their heads in the sand to […]

What to do When Feeling Suicidal

Mental Health

Most people feel like committing suicide at one point in their lives but the difference is in how they deal […]

How to budget for Christmas

o-PIGGY-BANK-facebook

We all want to spoil our loved ones and buy gifts for Christmas, but our pockets sometimes wouldn’t allow this […]