What is Financial Health definition/concept

Health is an asset that can be of different types. Health is not just about general well-being, but also about economic well-being. Thus, the financial health refers to the management of finances . For example, from an economic point of view, it is very important to integrate the economy as an investment for the future.

For this reason, to maintain good financial health, expenses must always be equal to income. In every home there are fixed and variable expenses.

How to save

It is through variable expenses that you can save, because in a way they can be more unnecessary expenses.

However, it could also be that a person’s salary is low.

This happens, for example, with precarious jobs. In this case, financial health is complex because the economy becomes almost impossible and the person lives only day after day.

Financial health is in constant relationship with the emotional

Why reason? Because economic problems cause constant personal concerns, for example, the uncertainty of the future. On the other hand, having excellent financial health provides greater peace of mind to be able to make long-term decisions, or even to have peace of mind when a job is lost , since the professional knows he has an economy to be able to live for a few months.

In relation to financial health, the person makes decisions constantly. For example, from choosing products from the market to buying a house, a car, renting an apartment, etc.

The economy is constantly evolving and there are increasingly new forms of collaborative economy  that also show this kind of mindset.

In the professional field, new doors open and improve the financial health of the business, even at the beginning of the activity, for example with the coworking, which means hiring a professional space in function of hours worked.

financial coaching

To develop skills on how to control money, financial coaching is born with the aim of promoting personal empowerment to control the numbers.

In this way, the person can learn to improve their resources or develop an action plan for the future, for example, a retirement plan or even look for another job on the weekend.

Debt is a bad sign of financial health. On the contrary, the economy shows the opposite side of the balance .

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