WHAT IS FINANCIAL HEALTH AND HOW TO GUARANTEE IT IN YOUR COMPANY?

What is financial health?

First of all, it is important to understand what financial health means , therefore, it can be summarized to people who manage to pay their bills on time, as well as have budget organization to spare money for emergencies or projects. In this way, financial health is about distributing resources correctly, spending only what is within possibilities.

In addition, this conduct makes room for a series of advantages, for example:

• Emergency reserves;
• Tranquility of paid bills;
• Mental health up to date;
• And even investment opportunities.

However, these benefits are not related to the amount of money, but to the way you manage to deal with all the available resources.

In other words, the meaning of financial health is linked to people who have a good relationship with money, thus, they do not spend more than they earn, therefore, they are able to organize and plan their next expenses, even facilitating the creation of an emergency fund or investment. Therefore, those who are financially healthy can have a better quality of life, in addition to living better.

What is financial health for?

The main benefit of the company’s or personal financial health is the possibility of having a better quality of life. In that sense, this advantage is possible, because when you organize your finances, your name is clear. Thus, not having a dirty name is essential to get credit from banks or financial institutions. In addition, the interesting thing about this strategy is that it allows for larger purchases, such as mortgages or smaller purchases using a credit card.

In this way, another advantage of those who have financial health is knowing how to deal with unforeseen events and take advantage of opportunities, so you worry less and live better.

In addition, financial health can affect physical and mental health, as preoccupation with money-related problems or with upcoming bills can lead to various illnesses, for example, heart disease and depression.

Therefore, knowing how to organize your budget and your money is essential to improve your financial health, so you are more prepared for emergencies and day-to-day expenses, Improves the body’s and mind’s health.

What harms your financial health?

Exchanged money

It is common for people to leave money in their wallet, especially when going out for emergency situations, but this habit can destroy finances, as carrying money increases temptations, shopping, wasting your money even more.

Using a credit card unnecessarily

The credit card is one of the main compromisers of your finances, therefore, it greatly harms your financial health, so going out with it unnecessarily is not recommended. Scheduling your lunch, for example, taking lunch to work, will not be beneficial if you decide to go out later to use your credit card, as it increases the chances of you spending on unnecessary products.

“Money was made to be spent”

Having this mindset can result in debt and budget losses, causing financial uncertainty. In this sense, it is common for financial education not to be highly valued in Pak, therefore, many people really believe that money is made to be spent, but it is fundamental to know how to value your finances, because only you know how difficult it was to get that money.

constant delays

One of the most budget-destroying habits is definitely being late. In that sense, in the past, it wasn’t a crucial factor for your finances, but nowadays with private transport services, being always late can hurt your pocket. Therefore, the ideal is to plan better when you have to go to a certain place, guaranteeing extra money that can help with the budget.

Impulsive purchases

Making immediate and impulsive purchases is harmful to your financial health. Thus, this behavior influences their behavior, so the consumer is unable to compare all available prices and, consequently, harms finances. Therefore, before making a purchase, check, compare and research prices very calmly, especially on more expensive products.

How to have financial health in your company?

In order to achieve financial health, it is essential to know how to organize your finances, so know what your expenses are and make a schedule to settle all accounts. In this sense, the starting point is to know the fixed and variable expenses, scheduling these bills to be paid on time, month by month.

This control is important to help with the organization, so you can check the amount needed to pay off the slips, in addition to not letting debts accumulate.

Another important point is to make savings, using this strategy to improve your financial health and save your money, saving a little of the amount every month, that is, this savings is useful to be prepared for unforeseen events and also for investment opportunities. .

However, it is essential to spend only what is necessary, so understand how much you can spend, avoid impulse purchases or products that are out of your budget.

Finally, buying with conscience is essential for those seeking financial health, so assess the needs of the services and products being purchased. In this regard, some questions are important, for example, do I really need it? Where will I store? Will I remember this item?

Business financial management

Knowing what financial health is is essential to improve your quality of life, this strategy when used in the work environment is also important to improve business financial management , facilitating efficiency in processes and increasing savings. Therefore, having this organization in finance is essential to understand the best opportunities for using your resources.

Thinking about it, Organize in Practice offers several online courses that can help organize finances , there are more than 9,000 students and companies that have already tried our methodologies, so don’t miss this opportunity, get in touch and transform your financial health!