• HDFC
• 01 Dec 2018
• Personal Finance

HDFC, Tester

As the name suggests, is an assessment of your personal finances. Financial health checkup is based on various parameters of personal finance and involves scrutinizing of income, expenses, savings, goals, assets, liabilities etc.

 

A financial health check is a preliminary step in the financial planning process. Getting a financial health checkup is a great way of staying updated on your personal finance and preventing scams from happening. This provides an easy idea whether your finances are aligned with your goals or if there’s a need or scope for some improvement. Basically, a financial health checkup identifies the gaps in your finances and outline steps to fill those gaps.

 

The common misconception is that a financial health checkup is a one-time activity. However, a detailed financial health checkup is required on a regular basis, just like our regular health checkups since our income, standard of living, and goals keep changing. Periodic evaluation of your personal finances will help you to determine your current asset or debt standing and in turn, help you to come up with strategies with respect to savings and investment decisions.

 

People just ignore taking this exercise not realizing the importance of financial checkup and its impact on the long run. The periodic diagnosis of your finances and wealth will not help in analyzing your financial problems but also help you to determine ways to solve your financial problems.

Here are some other benefits of conducting periodic financial health checkups

1) Smart and proactive move which provides you with a standing of your personal finance.

2) Provides a roadmap to your finances, in which direction you should move.

3) Helps in finding the missing piece of jigsaw puzzle i.e. guides in how you can achieve your goals.

4) Help you to take action on the right time i.e. when the situation changes. For example, if your investments are not performing as expected, you have the knowledge and the option to postpone your discretionary goal.

5) Covers assessment of not just investments but also protection products like life, health and critical illness insurance.

 

Conducting a financial health checkup from time to time give you the peace of mind when everything is going according to your plans. On the flip side, a time financial health checkup will alert you when things are going south and will give you sufficient time to enforce corrective measures. Many health checkup services, like HDFC securities, also provide recommendations on various things like how much to save, goal planning and appropriate insurance cover.

 

People often procrastinate and postpone the act of taking control of their finances. They may be occupied with other things or may not know where and how to start. However, dedicating some time to this activity can be far more beneficial in the long run. So, get your finances’ health checked today!