The road to optimal financial health is long, but it is not impossible. It all comes down by practicing big and small positive habits that together are the ones that will allow you to achieve your financial goals and have peace of mind with money. Assess your current situation, detect your areas of opportunity and get to work to improve. Here is a list of 5 factors to improve your financial health that you should keep in mind.

  1. Income and expense management

Once you have committed to being more responsible with your money and improving your financial health, the first advice is to know exactly how much money you generate and how much you spend, but above all, what you spend it on. You have to first detect the small holes that affect your financial health adversely. You should detect whether you are losing a significant amount in expenses or discovering that you have a surplus of money that you could put to work for your future; here you go to discover.

  1. Savings and Investment

Saving is an essential element in the health of our finances because, through it, we are shielding ourselves from the future. We don't know what life will hold for us tomorrow, but what we can do is be proactive and be prepared. If it is easier for you, you can think of saving as an obligation that you have with yourself, and that is just as important as your other commitments.

Another of the habit to have good financial health is the habit of investing. Remember that it is best to put our money to work because if it stays in the drawer, as time goes by, it will lose value. When it comes to investments, do not forget an important point: you do not have to put all your money in one business; diversify is must, and so you can maximize your profits and minimize your risks.

  1. Insurance

Insurance is one of those expenses that can be considered unnecessary until the day we need it, and we understand why it is so important. Do not fall into the thought that you are wasting our money by taking out insurance because, on the contrary, you are protecting yourself against something that, if it happens, could do enormous damage to your financial health.

  1. Responsible purchasing

We all like to pamper ourselves, and there is nothing wrong with doing it as long as you are doing it responsibly. Don't fall into the trap of promotions that can make you spend on things you don't need, and don't let your actions be dictated by what others do or say. Comparing yourself to others is not good for your finances or your self-esteem because it prevents you from seeing the valuable things you have and being grateful for them.

  1. Good credit management

We leave this point for last, as it involves several things that must be taken into account. You likely know that having a good credit history is essential to access certain bank loan from ikano, that help us achieve goals, such as consumer loans, to buy a new vehicle or to buy a new home.

What does it take to make good use of your credit? Well, first of all, be aware of all the credits you have. With which institutions you have these obligations, the characteristics of each credit (such as the term and the interest rate) and, once you have all this in order, comply with all your payments promptly.

One of the most common financial goals we can have is the need to expand our creditworthiness. To increase your credit capacity, you first need to learn to spend responsibly (and spend less than what you earn), give uninterrupted punctual payments and diversify your credit a little.