Why Financial Health Assessment Matters at Year-End
Year-end is an ideal time to conduct a financial health assessment, as it allows you to understand what steps you need to take to improve according to your financial goals. Evaluating your financial health is crucial for setting yourself up for success in the coming year.
Condusef’s Comprehensive Financial Health Cycle
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) outlines a comprehensive financial health cycle that includes security, resilience, control, and freedom. This test will help you determine if you’ve applied what you’ve learned to strengthen your financial well-being.
Financial Health Assessment Questions
1. How do you manage your debts?
- a) I only take out credits that I can pay on time and in full.
- b) Sometimes I’m late or pay the minimum, but I try not to accumulate more debt.
- c) I frequently borrow money or use one debt to pay off another.
2. What steps do you take to protect yourself from financial surprises?
- a) I have an emergency fund that can cover several months of expenses.
- b) I have some savings or a credit card for unexpected situations.
- c) I don’t have savings; if something happens, I seek help or take out a loan.
3. Do you have a retirement or long-term savings plan?
- a) Yes, I make regular contributions or have investments for my future.
- b) I’ve thought about it but don’t know where to start.
- c) No, I see it as something distant or unnecessary for now.
4. How informed are you about your personal finances?
- a) I consult reliable sources, like revisa, compare, and decide, before making financial decisions.
- b) I read or inform myself occasionally, but not consistently.
- c) I don’t seek information; I rely on what I hear or am advised.
Assessment Results and Recommendations
1. Mostly C: Finances at Risk
- Your financial health requires attention. You might be living paycheck to paycheck, overly reliant on credit, or unaware of where your money goes.
- Tip: Start by observing your expenses, avoid unnecessary debts, and seek reliable financial information. It’s never too late to improve your relationship with money!
2. Mostly B: In Process of Strengthening
- You’re on the right track. You have some knowledge and positive habits, but you still need to solidify them.
- Tip: Create a monthly budget, start building an emergency fund, and commit to a realistic savings goal. Small steps lead to significant achievements.
3. Mostly A: Strong and Healthy Finances
- Congratulations! You have developed good financial habits: you plan, save, and invest with purpose. You’re in control and focused on your goals.
- Tip: Keep updating your knowledge and adjust your objectives annually. Consistency is the key to maintaining financial freedom.
“Close this year with clarity and open the next with action,” recommends Condusef. “Make financial health your goal for 2026: more control, foresight, and greater peace of mind.”
