By Ruthven Phillip

I were to ask when was your last health checkup or physical, you would probably point to a timeline between one month and twelve months ago. Health checkups have become a regular part of our nomenclature. Spouses compel each other to go; siblings expect it from each other, and friends push us toward our obligatory annual physical examination. Conversely, no one seems to care—or maybe they don’t know—how you’re doing financially or economically.

Why should they be in your business if you drive the best cars, wear the best clothes, live in the best neighborhoods? They may not appreciate that you’re but one paycheck away from not being able to fulfil your monthly obligations.

If you told someone that the results of your physical revealed elevated hypertension, their Christian response is to prescribe a list of foods, and they may even pray and fast with you. However, when you are paying the minimum balance due of thirty-five dollars a month on your $7,500 credit card debt, no one is sounding the alarm.

Wealth check-ups are just important as health check-ups! Some believe that wealth check-ups are not necessary until you reach a certain age. The principles and concepts of wealth check-ups, however, should be taught and established prior to becoming a responsible adult. Why separate wealth from health! Doesn’t 3 John advocate above all things that we prosper and be in good health?

How about we survey some of the wealth check-up elements and see your grade.

Credit Score:

Credit scores are classified into five categories. Poor 300-579; Fair 580-669, Good 670-739; Very Good 740-799 and Excellent 800-850. The average credit score as of February 2021 in the country was 698 which means Good. But Good means nothing if you’re just average . Why? Because let’s say you live in the state of Massachusetts and want to purchase a home. Well, the average credit score of home purchasers in Massachusetts was 720. However, if you wanted to leave Massachusetts and relocate to North Carolina, the average credit score there was 684. A wealth check-up would provide you with the tools and knowledge to become Very Good and reach a score above 740.

Emergency Fund:

Most people do not have 3-6 months saved in their emergency fund. Truth be told, their credit cards function as their emergency fund. Let’s consider ways to build your emergency fund account. Perhaps you can allocate a portion, not all, of your tax refund towards your emergency fund account. If you are going to begin new employment and received a signing bonus, perhaps you can contribute a portion of your signing bonus towards your emergency fund account. A wealth check-up can shine a light on areas for development and growth.

Net Worth

Every four years politicians ask, are you better off now than you were four years ago? The wealth check-up question is, are you wealthier now than you were one year ago? Sure, you acquired new house, updated your car, bought new furniture and obtained a new degree. But is your net worth any higher? Do you measure more assets than liabilities? Where are most of your assets concentrated? Do you need to re-balance your portfolio?

Take Away:

A major difference between a health check-up and a wealth check-up is that one may reveal conditions which are in your DNA, and to which you may be predisposed. On the contrary, poor stewardship is not a predisposition or in your DNA! If you need a wealth check-up, reach out to a financial coach or advisor. Don’t take your finances for granted!

Ruthven R. Phillip, Esq., is a tax attorney, Stewardship and Philanthropy Ministry Advisor, and CEO of Give2Getrich, LLC Give2Get Rich, LLC 2022. All Rights Reserved. Any distribution or reproduction of part or all of the contents in any form is prohibited.