Why You Should Check Your Wealth Like You Check Your Health
In today’s fast-paced world, many people rely on banks, insurance agents, or even finance apps to tell them how they’re doing financially. But just as no doctor can know your full health status without your honest input and active participation, no financial institution can fully grasp your financial well-being without your own ongoing awareness and assessment. Just as we routinely go for medical check-ups to monitor our physical health, we should also perform regular “wealth check-ups” to evaluate our financial health.
1. Financial Health Is a Personal Responsibility
While banks or insurance companies can provide snapshots of certain financial metrics—such as account balances or policy values—only you can understand the full picture: your income sources, spending habits, liabilities, goals, and lifestyle. A study by Klontz et al. (2015) emphasized that financial behaviors are deeply personal and often emotional, meaning that no third party can fully manage your financial wellness without your consistent involvement.
Unlike institutional metrics, your personal cash flow (the money you earn and spend) and net worth (your assets minus your liabilities) reflect your real-time financial well-being. Knowing these two numbers is equivalent to knowing your body mass index (BMI) or blood pressure—vital signs that indicate whether you’re financially “fit” or at risk.
2. The Parallel Between Health and Wealth
According to Lusardi and Mitchell (2014), financial literacy and proactive financial behavior are strong predictors of long-term financial success. Similarly, proactive health behaviors (like regular exercise or annual check-ups) are known predictors of longer, healthier lives (WHO, 2021).
So why do people treat these two domains so differently?
- People schedule annual health screenings but often ignore budgeting or financial planning for years.
- We track calories or steps but don’t track expenses or net worth regularly.
- A minor health issue triggers a doctor visit, but financial stress is often normalized until it becomes overwhelming.
This cognitive dissonance is concerning. Financial stress is one of the leading causes of anxiety and depression globally (Fitch et al., 2020), just like unmanaged physical health leads to disease.
3. Wealth Check-Ups: A Preventive Financial Habit
Just like you measure your blood pressure or cholesterol to detect early signs of disease, wealth check-ups can help detect early signs of financial strain—such as negative cash flow, creeping credit card debt, or underinsured risks.
A good “wealth check” includes:
- Monthly Cash Flow Review – Are you spending more than you earn?
- Quarterly Net Worth Calculation – Are your assets growing faster than your liabilities?
- Annual Goal Review – Are you moving toward your financial goals (retirement, property, education, etc.)?
Tools like personal finance spreadsheets or budgeting apps can help, but awareness is the first step. You are the best person to take charge, not your banker, financial advisor, or insurance agent.
4. A Culture Shift: From Reactive to Proactive
The global financial landscape is becoming more complex. Credit products, investment options, and insurance schemes are everywhere—often pitched to consumers who don’t fully understand them. In such an environment, being passive is risky.
As with health, early intervention saves lives—and wealth. Taking charge of your financial well-being not only builds confidence but also empowers better decision-making. As Brüggen et al. (2017) observed, individuals with higher financial awareness show stronger resilience in times of economic stress.
You Are Your Own Wealth Doctor
Financial well-being, like physical health, doesn’t happen by accident. It demands conscious effort, regular monitoring, and informed decision-making. If you would never delegate your health decisions to someone who sees you once a year, why would you do the same with your finances?
Begin today by calculating your cash flow and net worth. Mark it on your calendar. Repeat it regularly. Treat it like a doctor’s visit — because your future self is counting on it.
