How to Evaluate Financial Health
- Your willingness to make changes in daily habits is absolutely necessary to change your financial condition.
- Spending habits. Some changes involve your actual
- Some changes involve life attitudes (i.e., teamwork, driving habits, etc.).
- Assess your present situation.
- To help locate source of problems.
- To help realize where your money goes.
- Determine "have to’s, "need to’s, and "want to’s.
- Determine total "take home" income.
- How much money is coming in from all sources?
- When is the money coming in during the month?
- Determine present expenses.
- Priorities, basic needs, standard of living.
- Cut down and cut out frills.
- Subtract expenses from income; this will show if you are financially "right-side up" or "upside-down."
- Record Keeping is a key element to making your budget work.
- Keep simple, but accurate and complete records.
- Will help to predict future needs and problems.
- Set aside funds for irregular or unexpected expenses.
- Start a Savings - Single most important element in developing financial self-sufficiency.
