ASSESSING YOUR
FINANCIAL HEALTH TO MAKE YOUR MONEY LAST by The SecondHalf Coach Wealth Management Team
T
o live a long life, you’ll need a healthy supply of money to go the distance with you. The risk of outliving your money is called “longevity risk”. This paired with recent history has moved many of us to take another look at our finances – a smart thing to do in any economy. Maybe it’s been a while since you took your financial temperature or maybe this is the first time you’ve considered it. Either way, the time is right to make sure you are financially healthy, and following the good financial habits outlined below will help increase the likelihood your money will last as long as you will.
Step 1: Current Status
Start by evaluating where you are today by tracking your current income and expenses. Do you have a budget? Do you itemize monthly expenses to visualize where your funds are going? If not, writing it down may help you pause when deciding whether to buy those monthly extras. Within this step it’s important you set clear short and long-term goals with a financial plan to pursue each goal. The plan can be as formal as you’d like but should be a written plan of action. Even though the market can provide a rocky ride at times, try
8 GOALMagazine: A Publication of Go2Goal | Winter 2022
to stick with your plan. Living within your means will help you not overspend, pay off monthly bills and eliminate needless spending to eliminate debt. Maintaining a healthy budget and balance sheet will help hold you accountable and prioritize which high-interest rate debt needs paid first.
Step 2: Make Changes
Once you’ve got a handle on where your finances fall, set some goals that will help you achieve better financial health. Make them realistic and hold to them. For example, if you have more credit card debt than you’d like, set a goal to pay it off by a
