6 Symptoms Of Bad Financial Health
Jul 11, 2018

Author: PersonalFN Content & Research Team

health savings

Fever, chills, muscle aches, cough, congestion, running nose, headaches and fatigue are common symptoms of flu. During monsoon even dengue and malaria, are common.

We take necessary precautions such as avoid outside food, drink boiled water, keep our surroundings dry and clean and so on.

But do you know that there are some evident symptoms which reflect bad financial health as well?

Yes, bad financial health.

As much as you need to be physically healthy, being financially healthy is equally important.

[Read: The 9 Thumb Rules To Achieving the Epitome of Financial Wellbeing]

And bad financial health also has some evident symptoms. Many ignore those symptoms, just like they ignore flu or other sicknesses.

[Read: How Should Doctors Take Care Of Their Financial Health]

Your overall financial health comprises of many elements, from learning how to live within a budget, controlling debt & excessive spending, to building a good credit history, planning for short & long-term financial goals, and learning how to invest. It's a lot to put your arms around.

But to maintain optimum financial health, you cannot disregard the symptoms of bad financial health. Some of the symptoms of Bad Financial Health are highlighted below:

  1. Not Having Whereabouts Of Your Money

    How much balance do you have in your bank account? Can you answer this question within a few minutes?

    In the age of plastic money, where debit and credit cards are swiped habitually, individuals are losing control over their hard-earned money.  They are often ignorant of money in the bank, and various transaction charges they are paying.

    This is the most common symptom, and to fix this you need to keep a check on your account balances and transactions regularly.

    Maybe you should get into the habit of regularly updating your passbooks or having the latest bank statements, and keep a check over the account balances and review your cash inflow and outflow.

    Watch this video on Cashflow Management – First Step of Financial Planning:

  1. Using Credit Card Even For Your Basic Needs

    Many individuals are compelled to use your credit card even for the basic requirements such as grocery, utility bills and so on. If you are one of them then, maybe you are living from paycheck to paycheck, not saving enough for tomorrow to achieve vital financial goals, and perhaps drowning in debt.

    A better option is to set a monthly budget for each of the basic unavoidable expenses.

    You can cut down on some of the avoidable expenses such as dining out, other outings and so on.

    You can also find ways to increase your income by taking up a part-time job or second job. But even before you do that, you need to fix your money habits.

  2. Having Very Little Savings

    If you have been working for quite some time now and still have very little savings, then it a sign of bad savings habit. And this can be just a start to a big financial crisis of the future, where you may be left with no money to meet vital financial goals, one of them being your retirement.

    Note, the first step to financial freedom is savings. Hence, save before you spend. Plus, invest this money with the intention to accomplish your short-term, medium-term, and long-term financial goals, by prioritizing the goals.

  3.  Paying Off One Debt With Another

    You may have searched on the internet about "Can I pay one credit card bill with another" …and if that's what is on your mind, then you are biting more than you can chew; used your credit card recklessly.

    If you are already having a lot of debt then probably you need to seek help and get out of it as soon as possible. This is a grave symptom of bad financial health, one which cannot be ignored.

    Use your credit card smartly and judiciously to avoid getting into a debt trap; because it is a vicious circle.

  4. Low Credit Score

    A credit score is the reflection of your credit worthiness and credit behaviour. It is assigned to you by a credit information companies such as CIBIL.

    Credit scores are accessed by lenders when you approach them for various types of loans. It is considered one of the most important deciding factors by banks/lenders.

    Hence it's best to keep a respectable credit score of at least 750 and above. A low credit score reflects your bad credit worthiness and behaviour, and reduces the chances of a getting a loan at the best interest rate when you need it the most.

    [Read: Everything You Need To Know About Credit Score]

  5. No Emergency Fund

    What if an emergency arises right now, will you be able to face it? Are you prepared to deal with it financially?

    If you do not have a rainy day fund, it is a sign that you are not prepared for the worse in life.

    It is good to be positive and think about a good future, but you must prepare yourself for the worse by having some savings.

    As you know emergencies such as hospitalization of family members, loss of job, etc. can knock the door anytime. But being financially prepared for the same is also important. Financial security at such moments gives you more courage and strength to come out of it graciously.

    An emergency Fund (also known as contingency fund) should at least by 6-12 months of your regular living expenses, including EMIs.

    [Read: 4 Things To Do Build  A Rainy Day Fund]

To Conclude…

Your financial health is as important as your physical and psychological health. So, signup for PersonalFN’s Financial Health Check-up, it’s FREE!


With this registration, we intend to start a conversation with you which would help you become more aware of your finances and also help you take firm steps towards a successful financial future.

The FREE ‘ONE MINUTE’ registration with PersonalFN brings along a host of benefits for YOU.

Act now!

Just like you cannot ignore flu or dengue or malaria during monsoon, you cannot ignore any of the symptoms of bad financial health as well.

If you wish to seek superlative guidance to be financially successful, reach out PersonalFN on 022-61361200 or e-mail at info@personalfn.com . We will be happy to hear from you.

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