How to Perform a Financial Health Checkup (and Get Your Money in Shape)

If your finances were a patient in the ER, would they be in great shape, needing just a routine checkup, or barely hanging on for dear life? Most people avoid looking at their financial situation the same way they avoid going to the doctor’s because they’re afraid of what they might find.

But here’s the truth: You can’t fix what you don’t measure.

If you want to win with money, you have to treat your financial health the same way you would your physical health. You need regular checkups, a clear action plan, and a commitment to staying on track.

So let’s s put your money through a Financial Health Checkup - a simple, step-by-step process to assess where you are, whats working, whats broken, and how to fix it.

Step 1: Check Your Financial Vitals

Before you start making big changes, you need to take stock of your current financial situation. Think of this as your financial blood pressure check- it’s a quick snapshot that reveals how healthy (or unhealthy) your money habits are.

Here’s what to look at:

✅… Your Net Worth - Add up everything you own (assets) and subtract everything you owe (liabilities). If you’re in the negative, that’s a sign your finances need CPR.

✅… Your Income vs. Expenses - Are you spending more than you make? If so, that’s like eating fast food every day and wondering why your health is declining.

✅… Your Savings Rate - Are you putting money aside every month, or is your bank account living paycheck to paycheck?

✅… Your Debt Load - How much do you owe? If debt is eating up your paycheck, it’s time for an intervention.

If any of these numbers make you sweat, don’t panic. That’s what the next steps are for.

Step 2: Examine Your Spending Habits

Imagine a personal trainer reviewing your diet. If they see that your daily intake consists of donuts and energy drinks, they’ll tell you exactly why you’re not reaching your health goals.

Your spending habits work the same way. If you don’t track where your money is going, you’ll never have control over it.

Action Steps:

📌 Review last months bank statements. What categories are eating up your income? Are there expenses that surprise you?

📌 Categorize your spending. How much is going to needs vs. wants? Essentials vs. luxury?

📌 Identify wasteful spending. Subscriptions you don’t use? Eating out too often? Impulse purchases? These small leaks sink financial ships.

A good rule of thumb: If you’re not telling your money where to go, it’s going to disappear.

Step 3: Diagnose Your Debt Situation

Debt is like carrying around a 50-pound weight everywhere you go - it slows you down, stresses you out, and limits your options.

Here’s what you need to ask yourself:

➡️ How much debt do I have?

➡️ What are the interest rates?

➡️ What’s my plan to pay it off?

If you don’t have a plan, it’s time to create one. The best way to do this is with the Debt Snowball Method:

1️⃣ List all your debts from smallest to largest (ignore interest rates for now).

2️⃣ Pay the minimum on everything except the smallest debt.

3️⃣ Throw every extra dollar at the smallest debt until it’s gone.

4️⃣ Once it’s paid off, roll that payment into the next smallest debt.

5️⃣ Repeat until you’re debt-free!

This method works because it gives you quick wins and keeps you motivated. Debt freedom isn’t just a dream- it’s a plan.

Step 4: Assess Your Emergency Fund

Most people don’t have enough saved to cover a $1,000 emergency which means one unexpected bill could send them spiraling into debt.

The fix? Build an emergency fund.

✅… While in Debt: Start with a $1,000 emergency fund. This is your financial safety net so that lifes little emergencies (like car repairs or medical bills) don’t force you to take on more debt.

✅… After You’re Debt-Free: Build your emergency fund up to 3 - 6 months of expenses. This protects you from job loss, major life changes, and financial stress.

Having this fund in place means you’ll never have to rely on credit cards or loans when life happens.

Step 5: Check Your Financial Goals

Your money should be moving toward something. If you don’t have clear financial goals, it’s like running a race with no finish line- you’ll never know if you’re making progress.

Take a minute to write down:

📌 Short-term goals: (e.g., save $1,000, pay off a credit card, start a side hustle)

📌 Mid-term goals: (e.g., build a fully-funded emergency fund, increase your income, invest for retirement)

📌 Long-term goals: (e.g., build wealth, achieve financial independence)

One Big Rule:

Get completely out of debt before thinking about buying a house.

A mortgage is the only kind of debt you should ever take on, and even then, you want to be debt-free, have an emergency fund, and a strong down payment saved before buying. Otherwise, you’re just setting yourself up for financial stress.

Step 6: Take Action & Build Better Habits

Now that you’ve checked your financial health, it’s time to start making changes.

🎯 Create a budget (and actually stick to it).

🎯 Cut out wasteful spending (every dollar should have a job).

🎯 Set up automatic savings (so you pay yourself first).

🎯 Make a debt payoff plan (and stick to it like your future depends on it).

🎯 Keep learning. Read books, listen to podcasts, and keep growing in financial wisdom.

Final Thoughts: Take Control of Your Financial Health

Performing a financial health checkup is one of the most empowering things you can do for your future. It gives you clarity, control, and confidence—and sets you up for long-term success.

The key? Don’t just check your finances, start fixing them.

What is one financial habit you’re going to improve starting today? Drop a comment below!