How Healthy Are Your Finances? 5 Key Areas To Track - Money Tip Tuesday

Looking after your financial health matters just as much as caring for your physical health. Just as you track health stats to see what needs attention, you should also keep an eye on your money, check your progress, and see what needs improvement. Fortunately, tracking a few key areas can paint a good picture of your overall financial health and illuminate areas that may need improvement.   Links: Learn more about Triangle's Financial Planning services Get a snapshot of your financial health with our free Financial Wellness Assessment Check out TCU University for financial education tips and resources! Follow us on Facebook, Instagram and Twitter! Learn more about Triangle Credit Union Transcript: Welcome to Money Tip Tuesday from the Making Money Personal podcast.   We all learn early on that taking care of our health is essential. We’re told to eat well, exercise, and manage stress. Looking after our bodies helps us stay strong and ready for life’s challenges. The same goes for financial health. It means checking your finances, keeping an eye on your spending, and tracking your progress to build a solid plan for the future.  The good news is that keeping track of your financial health isn’t hard. With a simple plan, you can review your situation, set goals, and take steps toward stable finances. Begin by looking at these main financial areas to gather the right information and get a clear view of where you stand.  Savings Strategy & Habits   In this area, you keep track of your current savings and see how well you’re saving. Checking your savings habits and balances shows how ready you are to handle surprises or a loss of income.  It’s important to look at how often you save, the total amount you’ve saved in different accounts, and your household income.  Track your total savings in checking, high-yield savings, and brokerage accounts. Also, note any automatic savings contributions and interest earned on your savings.  Cash & Liquidity Health   This shows how steady your cash flow is. The money coming in should cover your needs and help you plan for your wants. Available cash gives you flexibility, and liquid cash is money you haven’t spent yet.  However, debt can make things harder. Debt affects your ability to access cash. If your payments stay below your income, you’re okay. But if your debt grows too much, it can limit your cash flow and make your finances less flexible.  In this section, review your cash flow, see if you can pay for your needs and wants, and compare your income to your debts.  You’ll want to track your income, total debt, debt-to-income ratio, and interest rates you’re paying to measure your cash and liquidity health.  Investments Health   This area is about long-term planning. Think about what you want your life to look like after you retire, how much money you’ll need, and whether your savings will support your post-retirement lifestyle.  Keep in mind that your investment needs will change as you get closer to retirement, so it’s a good idea to review your investments regularly. Financial professionals can help you choose the right mix for your stage of life and guide you in building a portfolio that fits your retirement plans. For more help, visit Triangle’s financial planning services at trianglecu.org or use the link in the show notes.  Track your current retirement savings, how much you’re contributing, your projected retirement savings and income, and what you expect to spend in retirement. Put all this information into a retirement plan that you can update as your situation changes.  Protection Health   Protecting yourself and your finances is an important part of staying healthy overall. This is a way to prevent problems before they happen. Just as health insurance helps with medical costs, life and disability insurance can help if something major affects your finances.  Long-term planning helps protect your wealth from unexpected problems. It also shields your loved ones and yourself from financial stress if something goes wrong.  Think about what insurance you have besides your employer’s life insurance. Do you also have an additional life insurance policy, short- or long-term disability, or, for later in life, long-term care insurance?  Check which insurance policies you have, how much coverage they offer, and if that’s enough to support you financially when needed. Review your premiums, coverage amounts, and look for any gaps in coverage you might need to fill.  Estate & Legacy Health   Estate planning is about preparing for what happens after you’re gone. Many people don’t have a plan and leave their families with a lot to sort out. Avoid this by making a clear, organized estate plan. This lets you decide how your assets, like your home and accounts, will be passed down according to your wishes.  There’s a lot to think about here, so when it comes to estate planning, it’s also important to have a financial professional right by your side to walk you through the ins and outs of putting together a solid financial plan. If you’re looking for help or services in this area our professionals help with this too. Follow the link in the show notes for our financial planning services.  If you've collected all the information but don’t know whether it means yore in good financial health or not, you can get a personalized report fast  with our quick and easy personal financial assessment. It asks a few questions, gives you a personalized report, and then highlights your areas for improvement. It only takes a few minutes and is a great first step toward understanding and improving your finances. Start today for a clearer view of your financial health. Try it out today! Visit trianglecu.org or follow the link in the show notes to get started.  If there are any other tips or topics you'd like us to cover, let us know at [email protected]. Also, remember to like and follow our Making Money Personal Facebook and Instagram to share your thoughts. Finally, remember to look for our sponsor, Triangle Credit Union, on Facebook and LinkedIn.           Thanks for listening to today's Money Tip Tuesday. Check out our other tips and episodes on the Making Money Personal podcast.