Financial Health – Let’s be honest – checking on your financial health can feel like a chore, kind of like going to the dentist. You know you should do it, but the thought of it isn’t exactly exciting. But here’s the thing: just like any other part of your health, keeping tabs on your finances is crucial for your long-term well-being. Over the years, I’ve learned that financial health isn’t something you can just set and forget. It requires regular check-ups. If you’re unsure whether you’re on the right track, here are five key signs that it might be time to take a closer look at your finances.

Is Your Financial Health on Track? 5 Signs You Need to Check

1. You’re Constantly Living Paycheck to Paycheck

Okay, so this one is a biggie. I don’t know about you, but for the longest time, I lived in the “just get to the next paycheck” mindset. It was a constant cycle of waiting for payday to cover the next round of bills, rent, and basic expenses. Sure, it felt normal at first, but after a while, I realized that I was living in a kind of financial survival mode.

Here’s the thing: if you don’t have any cushion between your paycheck and your bills, you’re at risk. The ideal situation is to have enough savings (hello, emergency fund!) to cover at least 3–6 months of living expenses. I didn’t get that advice until I was a few years into my career, and looking back, I wish I’d started earlier. The stress of living paycheck to paycheck can take a toll, so if that’s where you are right now, it’s a sign to take a hard look at your spending habits and see where you can start saving.

2. You Don’t Have Any Savings or Emergency Fund

Speaking of emergency funds, if you don’t have one, that’s a big red flag. When I didn’t have savings, I’d live in constant anxiety, knowing that any unexpected expense could throw me off track. Whether it’s a car repair, a medical emergency, or a job loss, life tends to throw curveballs at the worst possible time. If you don’t have an emergency fund to cover these unexpected expenses, you could be in serious trouble.

At first, it can feel like there’s no way you’ll ever have enough to save. I was there too. I started by putting away just $20 a week, even though it felt like peanuts at the time. Slowly, over time, it added up. Eventually, I had enough to cover things like car repairs and medical bills without dipping into credit cards. Start small, even if it’s $5 or $10 per week. It’ll build up, and that peace of mind is totally worth it.

3. You’re Racking Up Credit Card Debt (And Not Paying It Off)

Ah, credit cards. We’ve all been there, swiping them for things we didn’t really need and telling ourselves we’ll “pay it off next month.” If you’re only making the minimum payments on your credit cards, it’s a sign that your financial health could be in trouble. I know I didn’t realize how much interest could stack up when I was younger, and man, I paid for it. It took me years to pay off some of the debt I racked up during impulsive shopping sprees.

If you’re in credit card debt, the first step is to tackle the high-interest cards. I made the mistake of just paying the minimum on all of them, and it dragged me down even further. The smartest way to deal with this is by using the debt avalanche method (paying off the card with the highest interest rate first) or the debt snowball method (paying off the smallest balance first for quick wins). But the important part is not just ignoring it. If you’re constantly carrying a balance, it’s time to take action. Your future self will thank you.

4. You’re Not Contributing to Retirement Savings

Look, I get it. Retirement can feel like a million years away, especially when you’re in your 20s or 30s. But the truth is, the earlier you start saving for retirement, the better off you’ll be. I didn’t really start thinking about retirement until I was well into my late 20s, and by that point, I’d missed out on years of compound interest.

If you’re not contributing to a retirement fund (like a 401(k) or IRA), this is a big sign that your financial health needs some attention. Even if you can’t contribute much right now, start with small amounts. If your company offers a 401(k) match, take advantage of it. It’s essentially free money. You don’t have to max it out, but putting even a small percentage of your income toward retirement now will set you up for a much easier financial future.

5. You’re Not Tracking Your Spending or Budgeting

One of the most powerful things I did for my financial health was start budgeting. It’s easy to ignore the details of where your money is going when you don’t track it. Trust me, I spent way too many years thinking I had it all under control, only to realize I was overspending in areas that weren’t even making me happy.

Start by tracking your spending for a month. I recommend using an app like Mint or YNAB (You Need a Budget), or you can go old-school with a pen and paper. Look at where your money is going. Are you spending too much on dining out, clothes, or subscriptions you don’t use? Once you see where it’s all going, you can start to make adjustments. It doesn’t mean you have to give up fun stuff, but it does mean you’ll be more mindful of your choices and priorities.

I’ll be honest, tracking my spending was a bit of a wake-up call. It wasn’t always pretty, but it allowed me to set a realistic budget that aligned with my goals. Once I was aware of my habits, I was able to make changes, and that made a huge difference.

So, are any of these signs ringing a bell? If so, don’t panic. You’re not alone, and it’s never too late to start making changes. Financial health isn’t something you achieve overnight, but by taking small, consistent steps, you’ll gradually see improvements. Start by addressing one of these signs, and the rest will follow. With a bit of time, effort, and patience, you’ll be on your way to a healthier financial future – and that feels pretty good.