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Today we’re sharing seven signs that you’re in good financial health. It’s a good checklist to measure where you stand and whether or not you’re in a good position for retirement. How do you measure up?
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Show Notes
We all know that health is an important part of life, but are you in good financial health? Today we’re sharing seven signs that you’re in good shape.
You don’t have any depreciating debt
This is debt that depreciates in value, like cars and credit card debt. That’s how debt works. The more you add, the deeper it gets. The tougher it gets to get out of it.
If you want to build wealth or generational wealth, start by getting yourself out of debt. Debt is paying someone else to use their money versus being an investor where somebody is paying you to use your money.
You spend less than you make
Do you actually know where you’re at today? If you’re spending more, you’re most likely in debt. If you’re spending the same as what you make, you’re not saving. If you want to become financially independent or retire, you need to save.
You save and invest and you’ve automated it
There is a lot of power to saving for retirement and investing, and there’s a lot of power in compound interest. If you took a snowball at the top of a hill and push it and let it roll down the hill, what happens? It gets bigger and bigger.
Other signs you’re in good financial health:
- You understand the tax implications of your investments
- You have a retirement income plan
- You and your spouse both know your financial plan
- You have a long-term care plan
Resources:
https://www.marketwatch.com/story/when-it-comes-to-retirement-security-wereno-17-11631723749
https://www.im.natixis.com/us/research/2021-global-retirement-index
Listen to the full podcast or use the timestamps below to jump to a specific section.
[3:31] – No depreciating debt
[5:03 ]– Spend less than you make
[6:51 ]– Save and invest
[9:15] – How much to save
[10:55 ]– Understand tax implications
[13:25 ]– Retirement income plan
[16:07] – Know the plan
[19:03 ]– Long-term care
[21:37 ]– Estate planning
Thanks for checking out this episode. We’ll talk to you again soon.
“If you want to build wealth or generational wealth, start by getting yourself out of debt.”
-Scott Sierens
