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How To Do A Finance Health Check

Your financial health refers to the ways in which you manage your income in terms of your livelihood or sustenance. Do you have savings? Do you stack up debts? Are you hitting your financial goals? When last did you conduct a finance health check? 

Why is conducting a finance health check important?

The holistic definition of health by the World Health Organization has it that health is a state of complete physical, mental, and social well-being; and not merely the absence of disease or infirmity. 

Just like how humans require the different parts contributing to the human experience to be on point to be considered healthy, the parts that make up our finances also have to be on point!

We’ve put together a list of checks you can make on your finances to assess its health.

1. Identify where you want to be financially, and what you have presently:

We have heard over the years how important setting goals are, not just setting any goals but realistic goals. This also applies to your finances. Your goals should be SPECIFIC, MEASURABLE, ATTAINABLE, RELEVANT, and TIME-BOUND, you know, SMART. When you have identified your goals, you can then assess how you can get there by working with what you have NOW.

For example, If your goal is to have a diverse investment portfolio and increase your passive income earnings. You want to work out why you want it, when you want it, how you intend to achieve it, and start out by being honest with what you have and the money practices that have led you here.

2. Track your spending habits:

This takes intentional and careful effort. It takes total commitment and honesty to journal and track your every spending to see where your money is going. This helps you take into account if you have terrible spending habits, you also get to see the ridiculous albeit unintentional ways money leaves your account especially if you’re Nigerian… *deep sigh.

3. Track your monthly saving habits:

Do you save, or do you spend money as you make it? What is your disposition towards putting some money aside – Is it a priority or an afterthought? What have you done with past savings? Are you disciplined with your savings? Do you have a savings structure? These are important questions to ask yourself if you want to make any progress. 

One of the reasons people seem to be terrible at saving is because they can’t envision themselves having healthy saving habits while maintaining a healthy social life. Lucky for you, we have an article that addresses this.

4. Check if you hit your monthly and quarterly goals:

It’s important to run through your old goals to see if you met, exceeded, or fell short of them. This helps you diagnose what the pitfalls are and mitigate them in your future plans. 

5. Review your debts:

If you have any, it has to be done. You should review how well you’re doing in paying off debts, whether loan or credit debts. If this is poor, It’s important to see why there are recurring debts and see if it’s a direct result of bad spending habits. Actively work on reducing your debts.

6.  Check your self-accountability:

It’s great to have partners you are accountable to, but it’s also a service to yourself to ensure that you are financially accountable to yourself. This involves intentionality, honesty, and the willingness to play the long game. Self-care very well includes healthy financial practices.

7. Analyze your emergency funds:

Nobody ever likes unexpected, sudden occurrences, they are no fun. However, they happen; c’est la vie, such is life! This is why it is necessary to plan ahead to mitigate future occurrences; otherwise, you find that despite your intentions, emergencies keep eating away at your money. If you do not already have money set aside for emergencies, it’s best you start today.

8.  Cancel Unnecessary subscriptions:

This one is quite tough to swallow because who doesn’t enjoy the pleasures and comfort of our diverse subscriptions? I hate to be the one to tell you, but some of them have got to go if you are serious about practicing financial responsibility. 

Some of these things have been subscribed to for so long ago, that you do not even remember that you have them, yet there are monthly/yearly subtractions from your account. You should do a thorough look into your subscriptions, and if you find some that aren’t vital to work and in some cases, relaxation (because you are deserving}, let them go!

In summary, a finance health check is vital to your being financially responsible, and we advice should be done regularly (daily spending), monthly, quarterly, and yearly.

Here is a list of everything discussed about doing a finance health check so far

  • Identify where you want to be financially and what you have presently
  • Track your spending habit
  • Track your monthly savings
  •  Check if you hit your monthly and quarterly finance goals
  •  Review your debts, if any
  • Check your self-accountability
  • Analyze your emergency funds
  • Cancel unnecessary subscriptions

Is there anything you think we missed? Let us know in the comments.

Money Notes

Money Notes #26 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. Only the most useful, relevant and practical entries on finance and money. If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance 

Industry conversations we think you should know.


You’re scrolling through your Twitter feed and you’re still beside yourself with laughter from a quirky reply from that funny tweep when your eyes fall on a tweet that reads “Knowing to buy crypto early enough alone would make you more than times 10 of $45m” and now your entire day is in the pits. You’re very close to screaming because apparently, everyone else but you seem to be on to this ‘crypto’ and it’s supposed to make you 10 times the amount of money you could only dream of? – this tweet just flat out screamed out your name and called you broke! 

The obvious dirty shade aside, the real reason for your angst is that you probably don’t understand what cryptocurrency is and why has it been hot for the last couple of years.

Cryptocurrency basically is a virtual or digital currency, as opposed to Fiat currency (such as paper money and coins) which is the legal tender issued and authorised by the government.

Fiat currency requires middlemen, such as banks, and this is interesting to note because a unique feature of cryptocurrency is that it is decentralized – this means that it is not controlled by any individual; it is dependent on a technology called blockchain and this means that the record of transactions made is copied and distributed across several computers linked on the blockchain making hacking or manipulation next to impossible.

Why does it seem like everyone is getting into cryptocurrency? 

It’s simple. The concept of money is rapidly changing. Transactions haven’t always been through money as we know it, trade systems such as barter trading where goods were exchanged based on the value they were perceived to carry were one of the earlier means. It so happens that as humans are given to change, the several systems aiding our survival go through evolutions of their own. This translates to fizzling out of old, outdated systems and in with the new and improved. 

Crypto with its peculiarities seems to be able to give solutions to some pitfalls of government-regulated currencies, for example, eliminating the middleman which in return takes care of the potential trickery that could happen when individuals have controlling power and stakes. People now have control of their money, in contrast to being at the mercy of government policies that can be changed in an instant.  

Examples of cryptocurrency include Bitcoin (the OG coin, “first of its name” and the most traded cryptocurrency) and the altcoins, which is a term for non-bitcoin cryptocurrencies such as Ethereum, Ripple, Litecoin, amongst many others.  

Cryptocurrency isn’t a legal tender yet, so it isn’t an official means of transaction in many places, however, people are gradually opening up to the idea and the possibilities it holds. It appears it is here to stay.  

The Breakdown 

The world of finance made simple and relatable

How Do Blockchains work? 

The words ‘digitally distributed decentralized record of transactions across a peer-to-peer network’ may not mean much for you when trying to have a grasp of blockchain technology, but how about this simple analogy? 

 You and your friends: Atinuke, Tunde, and Angel decided to start a tradition of vacationing for a week after a long and busy work year.

You, however, are still seething from last year’s vacation because everyone trusted Angel (who magnanimously offered to it, by the way) with planning and making reservations, and not only did the entire group spend most of the vacation week in bed… and well, in the bathroom after a bad case of food poisoning from a hotel with multiple health code violations, You also had your most expensive wig snatched straight up from your head where it was sitting pretty by a petty thief during a tour of the city. 

So, this year, everyone came to the unanimous decision that it’s all-hands-on-deck with the planning.  

Owing to your respective busy schedules, all four of you decided to divide the planning of the vacation amongst yourselves by assigning tasks:  

  • You have the responsibility of coming up with a trip budget. 
  •  Atinuke has the responsibility of making the necessary research on vacation spots and hotels -yeah, I wouldn’t trust Angel with that either. 
  •  Angel is tasked instead with making the reservations at the chosen hotel and finally, 
  • Tunde is saddled with making flight arrangements, in that order. Please, follow closely.  

Because the accomplishment of a successive task is reliant on the accomplishment of the preceding task, it makes sense to open a telegram group where reports and receipts will be recorded and kept in a place accessible by all four of you anytime anywhere.

This way, nobody takes the bulk of the responsibility and there are no rude shocks along the way because everyone is abreast of every single detail.  

ou ask, how does this relate to blockchain technology? I’ll show you. The Telegram group represents the blockchain, which is a decentralized system easily accessible by anyone. The task reports and receipts? These are the transactions recorded on the blockchain. You and your friends? The peer-to-peer network. How clear is this? Do let us know in the comments.

Money Tip

Knowledge you can use

As you would with any other venture with a promise of financial freedom and high returns, it is important to assess the risks involved before delving into the world of cryptocurrency. So, whether you plan to trade, invest, or buy and hold in a digital wallet, you must be willing to play the long game. 

If you have paid attention in recent times, you should be able to tell that the market has been quite volatile in the past, however, as time passes, you should be able to predict possible rising and falling just as you would other financial assets such as shares.  

You want to:  

• Conduct thorough research on different exchange platforms, weigh the pros and cons, and consult with experienced investors and traders.  

• Diversify your portfolio. Don’t put all your eggs in one basket. For example, it’s safer for you not to rely on Ethereum alone because you see a lot of people getting into it.  

For You

Fun, useful stuff you will absolutely love!

Remember this hilarious Sweet Boy ‘Q’ interview with VJ Adams?  

This Dragon was ahead of its time.  

Take a look at these helpful tips on cryptocurrency. 

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