4 Symptoms Of Poor Financial Health

Your financial health refers to the state of your finances - it’s an overall look at how well-prepared you are for unexpected financial emergencies. 

Like your physical health, your financial health is essential for a happy and successful life. And just like how you shouldn’t ignore symptoms of a potential illness, you shouldn’t ignore symptoms of poor financial health. 

These are 4 of the most common red flags to look out for:

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You have little or no savings for emergencies

One of the fundamentals of good financial health is having an emergency fund. This is a pool of cash that you save and set aside strictly for unexpected expenses such as car or home repairs, family emergencies, or temporary loss of employment. 
 
Not having an emergency fund can potentially be the start of a major financial crisis in the future, which can affect your ability to meet your day-to-day expenses and vital long-term financial goals such as home ownership and retirement. 
 
Saving is the first step to good financial health. Save before you spend, and once you have accumulated enough, invest some of the money to grow it further.

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You have a low credit score

Your credit score refers to a 3-digit number assigned by a credit rating agency to represent your creditworthiness. In general, a good credit score ranges between 697 to 850. A fair score is between 651 - 696, while anything 650 and below is considered poor.

Having a low credit score can greatly reduce your ability to get approved for credit cards and other loans with the best interest rates available when you need them most. Sometimes, it can even affect your chances of getting a job!

If you haven’t been on your best financial behaviour, your priority should be to get your credit score back up, and then maintain the good score as much as possible, as your long-term financial health depends on it.

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You have no budget and don't know where your money goes

You are willingly letting your finances get out of control if you don’t track your monthly expenses. 
 
In this age of plastic money, it can be easy to lose sight of where your hard-earned money goes when you don’t monitor your spending and follow a budget. 

Good financial health requires effective management of income and expenses. Tracking your expenses will help you identify and eliminate wasteful spending habits.

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You have no insurance

If the unthinkable happens where you become disabled or are no longer around, would you or your family be able to carry on with your day-to-day lives?

If you end up with a medical emergency, or you are diagnosed with a critical illness, or become disabled due to an accident, are you financially equipped to cover all related expenses?

These unexpected incidents can potentially leave you or your loved ones financially crippled if you are uninsured, due to the sudden increase in expenses and/or loss of income. Rebuilding your finances will also be a challenge.      

An insurance plan will shield you from these uncertainties, and ensure you and your loved ones can carry on with your daily lives. 

Your financial health matters. It affects your overall quality of life, in particular your mental and physical health. Improving your financial health will not only alleviate stress, it will also lay the foundation for a stable and secure financial future. 

If you recognise any of the signs above, don’t be afraid to get the help you need. No one can do it all alone, and no one should.

As you work towards improving your financial health, let Gibraltar BSN’s wide range of insurance plans help you ensure your finances stay protected. 

We have i-Care, our life insurance plan which starts from as low as RM9.75 a month. We also offer i-Med, an affordable medical plan that starts from RM41.85 a month, as well as i-Protect, a critical illness plan from as low as RM7.60 a month.