What Is Financial Health?

March 16, 2021 | Louis Tully

Wallet being checked for financial health

Financial health is one of the hottest topics these days. How do we stop stressing about money and build wealth? In a country where most people live paycheck to paycheck and from payday to payday, financial health is something more people should care about, and some have already started doing so.

After the 2020 pandemic, ever more people are trying to secure a better financial future for themselves and their children. So, let’s start with the basics. What is financial health? Here are the top 5 factors.

Top 5 Factors of Financial Health

1. Being Able to Pay Your Expenses in Full on Time

When learning what financial health is, one of the things to keep in mind is the ability to pay your monthly expenses in full and on time. If you’re financially healthy, payments like rent, utilities, or debt can be automated without you having to worry about having enough money for groceries. It’s a large part of your paycheck you have no grievances spending because it doesn’t influence your daily wellbeing.

2. Having Necessary Insurance Coverage

Financially healthy people are insured on all possible fronts – health, life, car, house, etc., because they view insurance as a smart investment – if anything happens it pays for itself (stopping any possible setback their finances could undergo). So, taking care of possible emergencies by covering your health, property, or even life with quality insurance is another important factor defining what financial health is.

3. Having Sufficient Short-Term Savings

Financially healthy people have an emergency fund covering 6 months’ worth of their expenses. In fact, on your journey to financial health, setting up an emergency fund should be your priority above anything else. So, here’s another important determinant of what financial health is – having a savings account with sufficient amount of money on it to take care of the unexpected making you feel safe.

Emergency fund is the primary security blanket you’ll have in case you’re hit with unexpected expenses or your financial situation suddenly takes a drastic turn to worse (say you lose your job).

4. Being Able to Invest into Retirement

Financially healthy people also have long-term plans, such as investing into their retirement. They know they shouldn’t rely on the government or their children to be taken care of when they get old, so they start getting ready for their retirement as early as possible, as well as diversifying their assets.

401k employer contributions, maxing out your (Roth) IRA, and investments in mutual funds are probably the least you’re concerned about if you’re financially unstable. But in order to understand what financial health is, be aware of just how crucial long-term investment into your future is. And this is exactly a reason why financially wise individuals take a step further and consult a financial expert (often multiple times).

5. Having Disposable Income

Financially healthy people spend less than they make – but they can spend more if the situation calls for it. They manage to avoid lifestyle creep by being frugal in their day-to-day life – but can afford to make large expenses on things they need (or enjoy) if the situation requires.

The freedom to spend without your finances taking a hit on any level (fixed expenses, savings, investments) is the number 5 determiner of what financial health is.

How to Deal with an Emergency without an Emergency Fund

Learning what financial health is and turning this knowledge into a habit takes time. It’s a process – often a long one. Unfortunately, that leaves a person trying to become financially healthy vulnerable to various financial problems before they can improve their financial state (at the very least set up an emergency fund).

If you’re hit by an emergency while living paycheck-to-paycheck, it can easily set you back if you don’t come up with a smart strategy for handling it. And if the problem is time-sensitive, getting cash the fastest way possible is of primary importance. A payday loan could be a great help in this case.

Why a Payday Loan?

Carolina payday loan representative passing cash to a customer

Online payday loans are accessible and fast. Credit scores don’t influence your eligibility – so you can apply even if your credit score is bad (or nonexistent altogether!) as long as you’re over 18, have some sort of income as well as an active checking account.

And if you live in South Carolina, then Carolina Payday Loans, Inc. might become your best friend and number one assistant in emergencies. We offer fast cash loans in SC, accommodate all kinds of income, and do our best to set you up with a payoff schedule you’re comfortable with.

And what is especially important in times of emergency strikes, is that our process takes only 30-45 minutes on average, and you get your needed cash the same day.

How Do I Apply for a Payday Loan?

  1. Go to our Home Page, find the short inquiry form and fill it out;
  2. Wait for the loan representative to contact you and set up an appointment with a verification agent;
  3. Have your government-issued ID, most recent pay stub, and a blank check from an active checking account in your name with you when you go to the appointment;
  4. Let the agent assess everything, decide if you are eligible, and determine the amount you qualify for;
  5. Sign a few more papers if the amount and terms of agreement are to your satisfaction – and get your cash!

Apply for Your Payday Loan with Carolina Payday Loans, Inc!

Become financially healthy by building up sufficient knowledge and turning it into a habit in your daily life! And if you ever run into an emergency, apply for a cash advance with Carolina Payday Loans, Inc. immediately, before the problem gets bigger!