I recently did my health screening subsidised by my company and the results were to be expected. In general, my health was okay except for elevated cholestrol level. This was something that I knew from past health screenings so I was relieved to at least note that the figure hadn’t increased over the last 2-3 years.

How many of us bother to do a health checkup? A check-up helps to identify signs of potential problems we may have in our bodies that could indicate a follow-up with a doctor or specialist may be needed.

But how many of us also do checkups for our own financial health?

One of the most useful things I learnt to do in my journey towards financial freedom was to compute my monthly cash flows as well as my personal net worth statement.

Having a cash flow statement helps clarify how your monies earned are spent on different lifestyle needs and wants. The net result of tracking where our cash flows is to understand ourselves better and to have a specific picture of whether we are a net saver or spender over time.

In order to progress in our journey towards financial freedom, it’s important to keep being a net saver for most, if not all, of the months.

Savings that are built up help to develop our net worth into something positive. While money doesn’t define who we are in total, it defines a significant part of who we are.

When you have a positive net worth, it does wonders for your self-esteem in knowing you are able to manage your cash flows and manage debt so that you are ahead. You don’t own more than you’re worth and that’s a feeling that is indescribable until you have paid off that housing loan or car loan.

I felt almost if a burden had been lifted off me when I moved from a personal net worth that was negative to one that was finally positive a few years back. This encouraged me on my journey towards financial freedom and to continue to live within my means, to save and invest, to grow and protect my means.

How is your financial health?

Do you know if you are even in a net worth positive or negative position?

Share with Panzer in the comments section.

Be well and prosper.

_{»crosslinked«}