It can also prevent anyone from making hasty decisions when faced with a financial crisis that could leave them in the red. So, how financially well are you? Here are seven checks to do.

Please note

The tips that are given should not be seen as financial advice but as a general guideline. It does not take into account your personal financial circumstances; therefore, we encourage you to speak to a financial adviser to help create a financial plan that will work with your financial situation and goals.

Honestly assess where you are

It can be hard to fix problems when you don't know the cause of such problems. Therefore, being honest with yourself by assessing your financial situation is vital. You can do this by seeking a financial planner or looking at your bank statements to tally up where you are. Ask yourself if your current spending is aligned with your financial goals or if they are detracting from these. Once you know where you stand, it will be easier to find a way forward without placing more strain on your finances.

Do you have a spending plan?

One of the cornerstones to financial literacy that empowers you and your finances is having a spending plan. A budget can seem like a small step into managing your overall financial wellness, but it can help you know where your money goes and also cut back on things that are causing you to bleed financially.

Are you reducing debt?

There is good debt that which can help build your credibility with lenders and then there is bad debt which can spiral into the red. Managing debt is key to your financial wellness. Therefore, making sure that you reduce your debt as soon as possible can increase your financial stability. 

Do you have safety net's in place?

COVID-19 has revealed that things can turn on us in an instance. Therefore, it is vital to have financial safety nets in place that can come in handy when you need them the most. Learn how you can build a financial portfolio that can protect you and your family when you need it the most. 

How solid is your emergency savings fund?

It's ok if you have not started an emergency savings fund, but it is vital to have one moving forward. Starting an emergency savings fund can seem overwhelming when we are already faced with so many expenses. However, the key is to set an amount that you can consistently and comfortably afford to put aside which will come in handy when those unexpected expenses pop up.

Check in with your attitude towards money

Operating from a place of lacking instead of maximising what we have often leads to us making decisions that can have a bigger impact on our finances than what we thought. Therefore, understanding your money personality and your relationship with money can help spot any gremlins that can wreck our plans of becoming financially well. 

Save for the future

While there is nothing wrong with living in the moment, it is important that it doesn't jeopardise your future goals of retiring comfortably. Check where you are in terms of retiring by speaking to a financial planner and what changes need to be made to make sure that you have enough to retire comfortably.