Bruce Helmer and Peg Webb
When people hear the phrase “financial health,” they often picture high income, a perfectly balanced portfolio, or a retirement account with a very large number attached to it. In reality, financial health is much more personal and far more practical.
At its core, financial wellness is about feeling secure today while preserving the freedom to make changes as life evolves. Financial health isn’t something you acquire and file away. It’s a habit that seeks progress, not perfection.
One useful way to track your progress is through a regular Financial Health Check — a simple, repeatable process to see what’s working, what isn’t, and where small tweaks to how you do things could make a big difference over time.
Start with goals and understanding
A good financial checkup begins with clarity. Do you know what you’re working toward, and do you understand the basics needed to get there? That might mean saving consistently, managing debt responsibly, or having a basic grasp of how investing works.
Many people underestimate how important education is to financial confidence. Money stressors often stem from uncertainty, not poor decisions. Reading financial articles, listening to educational podcasts, or attending a community workshop can be important first steps in becoming financially literate.
Know your net worth
A net worth statement may sound intimidating, but it’s simply a snapshot: what you own minus what you owe. Your home equity, savings, and investments go on one side; mortgages, loans, and credit card balances go on the other.
Updating this once-a-year can be surprisingly powerful. The number itself matters less than the direction. Is your net worth gradually improving over time? That trend often tells the real story.
Understand your cash flow
Before you can create a budget, you need to know where your money actually goes. Tracking spending for a month or two, whether through an app, spreadsheet, or even a simple notebook, can reveal patterns you might not notice otherwise.
This step isn’t about judgment. It’s about awareness. Many people discover they’re doing better than expected, while others find small leaks that quietly add up.
Spend with purpose
Not all spending is bad spending. The real question is whether your money is supporting what matters most to you.
Cutting back on low-value expenses, such as unused subscriptions or impulse purchases, can free up dollars for things you truly enjoy. The goal isn’t deprivation. It’s balance, so you can spend on what brings you happiness without guilt.
Pay yourself first
Saving for retirement remains one of the clearest indicators of long-term financial health. Even modest increases, especially when tied to raises, can make a meaningful difference over time.
It’s also worth paying attention to where your savings go from a tax perspective, balancing taxable, tax-deferred, and tax-free accounts when possible. Workplace benefits, such as employer matches, health savings accounts, and financial education tools can add meaningful support.
Manage debt and credit sensibly
Debt isn’t inherently bad, but high-interest debt can be a major obstacle to achieving financial peace of mind. Paying down credit cards and other costly loans often delivers immediate relief from money worries.
Checking your credit report once a year is another smart habit. Errors and identity theft are more common than many people realize, and your credit profile affects everything from loan rates to insurance costs.
Prepare for the unexpected
An emergency fund acts as your financial shock absorber. Ideally, it covers several months of essential expenses. Building it gradually is perfectly acceptable.
Accessibility is very important. Emergency savings should be liquid and stable, not tied up in long-term investments meant for growth.
Review your investments periodically — and your comfort level
At least once a year, it’s worth asking whether your investment mix still fits your goals, time horizon, and tolerance for risk. A simple gut check helps: Are you sleeping well at night? If market swings cause ongoing anxiety, your portfolio may need adjustment.
Don’t overlook your physical health
Financial health doesn’t exist in isolation. Physical health plays a major role in how much you can enjoy the life you’re planning for. Staying active, eating well, and keeping up with preventive care are just as important as saving and investing.
In the end, a Financial Health Check isn’t about achieving a perfect score. It’s about staying engaged, making thoughtful choices, and recognizing that small, consistent improvements can lead to lasting financial freedom.
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Bruce Helmer and Peg Webb are financial advisers at Wealth Enhancement Group and co-hosts of “Your Money” on WCCO 830 AM on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Advisory services offered through Wealth Enhancement Advisory Services LLC, a registered investment adviser and affiliate of Wealth Enhancement Group.
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