Checking your Financial Health
Worse still, you may not know till very late if your money situation is already in the red. Anyone, who is serious about financial stability and credit progression must take interest and do a financial checkup from time to time. Here are some guidelines.
Do you check your balance sheet every 6 months or a year?
Balance sheet is a snap shot of your activities and you can see very clearly if you are currently in the red or not and how healthy your assets and liabilities are. You will also be able to assess how much your net worth is. This is a very important number that you must be aware of if you re serious about maintaining a healthy financial status.
Net worth will let you know how much your assets and liabilities you have and if your net worth has grown from the previous financial check up conducted. Moreover, you can see clearly if you are spending within your means as well as if you are investing wisely.
Do note that you need to refer to your cash flow statements as well as income statements to verify what you see on your balance sheet to get an in depth picture. However, a quick look at your Balance sheet would give you a good overview.
Are your aware of your Ratios and how they are performing?
Your current ratio, asset liability ratio and such are very important. You may not notice something amiss until you look at the ratio and the numbers that these ratios reveal.
It is a good idea to ensure that you keep yourself updated on your ratios and how they are performing against your yardstick.
Do you have investments that need polishing?
Investments are a good way of increasing your credit status. However, at times, we may be faced with investments that were very enticing when we invested and then had slowly dies down.
If you have a dormant investment, you need to assess the value of being invested. It is best to get out of investment if they are not performing by a given timeframe. You need to set this on your every credit check up and assess on the next to make a decision.
Giving your bank balance and investments a constant and consistent financial credit check will help to keep your money status remain in the green
Here, on our website, you will find accurate information on money news and headlines, including expert guides on investments on how to achieve wealth, save cash and look after your money from – Seek4media.com.
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