Know Your Financial Health

To fix your finances, you need to know your financial health. You may need to consult a financial adviser or mentor in the area of finances. You can consult books on personal financial planning to diagnose your situation.

Many viruses attack our finances, but the most common strain is financial illiteracy. It has different strains, mild, medium, and acute. This is based on the level of violation of laws of finances. Having an outsider to diagnose the disease is the preferred option, as he will likely spot the things we are blind to.

With an accurate diagnosis, you will know from what angle to tackle the problem. The diagnosis shows clearly how you boxed yourself into the corner you found yourself. The major culprit is poor money habits.

Filling a Leaking Bucket

Trying to make more money while mismanaging what we have amounts to attempting to fill a leaking bucket. Fixing your financial health is a major step to attaining financial freedom.

Without sound financial health, you cannot exit the rat race no matter how much you make. You are sustaining your current standard of living with your current income, not your wealth. In simple terms, you are still working for money. Money is your boss.

If there is a downturn in the economy or in your business, your finances will go into a tailspin. If the downturn persists, your ability to hang on is compromised by your lack of reserves, and you will be forced to swallow your pride and return to the rat race.