How is your financial health? It’s time for a check-up

16/11/2020

An occasional financial check-up is just as advisable as a medical one. If we want to avoid an “emergency procedure”, we should give our financial health a regular once-over so that at the slightest symptom we can come up with the right treatment in time.

We want to make this easier for you, by giving you helpful ideas and tools:

  • Even before preparing a budget, think about your life plan: your personal situation (age, marital status) is important for knowing your future goals. This will influence your spending and, logically, the income you need to cover your expenses.
  • Assess your current financial wellbeing in depth:
    • On the one hand, your strengths: your income, your job and your assets. It is important to know whether your income is steady or sporadic, whether or not your employment status is stable, and whether you have properties or investments you could fall back on if needs be.
    • On the other, your weaknesses: your debts and expenses. Pay attention to the structure and cost of your debt (whether you have borrowed more than you need and too expensively), whether you can avoid unnecessary spending and whether you will be able to cover unforeseen expenses.
  • Transform all of this into an itemised, quantified and realistic monthly budgetAbre en ventana nueva in which savings should play an important role: not only because their mere existence is a sign of financial health, but also because, little by little, you will have a fund that, in the worst-case scenario, you can dip into to cover unforeseen expenses and, in the best, you can enjoy however you like.
  • Get familiar with the financial environment and continue your training: it is advisable to follow the indices and rates that have a bearing on your financing, see how the cost of living impacts your day-to-day and study the best way to avoid risks.

You should know that by performing this financial check-up, everyone wins:

  • It helps you improve your quality of life: by taking charge of your finances, you will exert greater control over your financial expenditure and you will know whether or not you really need to take credit and, if so, how much. You will also see how, little by little, your perseverance results in valuable savings.
  • Banks can lend more confidently when they have more reliable and in-depth knowledge of your solvency.
  • Lastly, you should know that by making this individual effort you are contributing, almost without realising, to our financial system’s wellbeing.
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