To sum up financial health in one word is “freedom.” Freedom in this way means “a person has the financial security and resources to choose how to live in the present and future.” If a person is in good financial health, there will be less worry and stress about the “what ifs” in life, no matter their stage of life. Financial freedom comes with resources which allow a person to navigate situations easier and with significantly reduced stressors. True financial health shows a person’s ability to thrive.

What are examples of financial health?

Some examples of financial health are a steady flow of income, having a long-term savings account that is being funded regularly, having manageable debt, paying your bills on time, investing, planning financially, having a healthy credit score, and spending well within or below your income.

Why is it important?

Financial health and well-being are important because they ensure that your personal finances have a strong foundation for a stable and secure future, allowing you to handle both expected and unexpected expenses. A person who can pay essential bills, has a growing savings account, and can afford their debt obligations is better prepared to navigate the “what ifs” of life.

What are some healthy financial habits people can start doing?

Some healthy financial habits people can start doing or improving on include such things as paying off debt, establishing/maintaining a budget, beginning or enhancing an emergency fund, tracking expenses/income, automating your savings/retirement contributions each paycheck, increasing your income streams, consulting with an expert on planning for long term investing, putting extra money towards debt or savings, and consulting a local financial institution to discuss with on-staff experts how to begin your financial health journey.

How can someone measure their financial health?

Someone can begin to measure their financial health by monitoring their credit score, seeing a decrease in high-interest debt, finding an increase in a positive cash flow, creating an increase in investment monies and in retirement monies, having a steady flow of income, enduring rare changes in expenses, and experiencing returns on investments, to name a few.

How can someone improve their financial health?

Someone can improve their financial health by taking a hard look at their finances and establishing a plan. This plan should be implemented to improve or enhance one’s financial health. It is also helpful to make an appointment with an industry expert to ensure the plan you establish is the correct plan for you.

Do you have any resources you would recommend for more information about financial health?

We recommend setting up an appointment to talk face-to-face with an industry professional. Financial Security Credit Union has five Certified Financial Counselors to help our members plan and navigate their finances on a deeper level. In addition to the knowledgeable staff, we also have products and services dedicated to ensuring our members have the resources they need to be financially healthy. For example, we have a package called “Financial Wellness 360” that is currently offered through a checking account provided to our members. Those elite benefits and resources allow members to navigate the road to financial wellness.

Is there anything specific that would be beneficial for people to know or consider with financial health that I haven’t covered?

Financial Security Credit Union is here for you. We have talented staff members available to help you achieve financial freedom. “People Helping People” is what the Credit Union movement is all about; worldwide, that is what we are here for: to be the best resource for our members. We would not be who we are without our members!