While you might be looking after your physical fitness by counting your calories and attending those spinning classes, have you ever considered how financially fit you are? Your financial wellbeing is just as important as your health and should be made a top priority in your wellness goals.
Mellony Ramalho, African Bank’s group executive: sales, branch network, offers these key markers to your financial
Do you have an emergency fund?
Ideally, your emergency fund should be able to see you through six months of no cash coming in.
Do you regularly track and pay your utility bills?
Mellony suggests that having utility bills automatically deducted from your account on a specific date each month is
a much better option than paying them on an ad hoc basis, which could lead you to missing a date or payment.
How substantial is your life cover?
If you don’t have life cover that’s at least eight times your annual salary you could run into a problem later in life. With inflation eroding the value of money, your investments should be assessed at least every two years to ensure they’re adequate in order to secure your family’s financial future.
What portion of your salary goes towards debt obligations?
Ideally, everyone would like to be debt-free, but as this is seldom possible, try keeping your debt to at least 30% or less of your income.
How good are you at paying your credit card bills?
Before you can save some money every month, it’s important to get rid of any debts that can gather extra interest. Best advice is to just pay off your credit card in full every month even if it means having to sacrifice some other purchases or luxuries in subsequent months.
COMPILED BY TARYN DAS NEVES PHOTOS: FOTOLIA.COM