GUEST EXPERT. That’s it! Here we are in December. Financial Literacy Month is over. Our minds (and minds) are already preparing for the holiday season and the vacations we want.

But before I leave you alone, allow me one last article to talk to you about financial health.

In fact, over the last few weeks we’ve been talking together about financial literacy, the role of financial planners, and the importance of a budget for the holiday season. All of these elements are intended to make you aware of the importance of good financial health. But after all of this, one question remains: When should we generally seek advice about our financial health? My answer ? As you already suspect, this is: constantly! And I will explain why in the following lines.

First of all, what is financial health or good financial health?

In fact, there is no “official” definition of financial health. The current definition (maintained by the personal finance community) is that financial health includes various aspects of your personal, family and financial situation, including asset protection, retirement preparation, taxation, your money management, the amount of debt you have, etc. By analyzing these elements We can determine whether a person is doing well or poorly financially.

According to the Financial Consumer Agency of Canada (FCAC), financial well-being is a person’s ability to comfortably meet all of their current financial obligations and needs and to have the financial resilience necessary to continue doing what they do in the future and to have a scope for action that enables him to enjoy life. In my opinion, it is at the same time a bit of an ant and a bit of a cicada (according to Jean de La Fontaine’s famous fable, The Cicada and the Ant).

However, according to FCAC, there are five factors that influence financial well-being: economic factors, social factors, psychological factors, factors of knowledge and experience with financial products and financial behavior. In a simpler way, I want to tell the people I support that good financial health means:

• Keep money aside

• Have a financial plan

• Know and track your expenses

• Distinguish between good and bad debts

• Have a retirement plan

• You have basic financial knowledge (know what a budget is and how to create one, understand the basics of financial security and credit management, investments, etc.)

Given this background, when does it make sense to seek advice about your financial situation?

I always ask the people I meet in workshops or in one-on-one consultations the following question: How do you rate your financial health on a scale of 1 to 5 (1 is the lowest and 5 is the highest)? If the score you give yourself is 3/5 or less, you should definitely consider consulting a personal finance professional. (To find out who this is, I invite you to read my article “What are financial planners for?”).

However, in my opinion, as mentioned above, it is not necessary to wait until you are in financial difficulty to consider consulting a professional to take stock of your financial health and make sure everything is going well.

If we make the comparison to physical health, we can (and should) go to the doctor when we are not feeling well and have symptoms that indicate an illness. But even if everything seems to be going well and you don’t have any symptoms, see your doctor once a year or every two years. Whether it’s about taking stock and making sure everything is still okay (and there’s no danger on the horizon), that’s not a bad thing either. It’s about, let’s say, prevention. And as you know, prevention is always better than cure.

Now, this step that you would take for your physical health, take it for your financial health too. It is important to consult a financial professional if we are not doing well (and/or worried) financially. But even if everything seems to be going well, remember to meet with your financial planner (or your bank advisor, your personal financial coach, etc.) at least every two years. Just to make sure everything is still going well and you are on the right track in managing your finances. Even if everything is going well with your finances, your financial professional can identify points that will help you optimize your financial health and make it even better.

The problem is that many people don’t want to consult a financial professional even when things are going badly. In 2019 an investigation into the insolvency company MNP found that “46% of Canadians would feel ’embarrassed’ about receiving financial assistance if their economic situation deteriorated to the point where they were forced to consider bankruptcy.” According to a study by BDO from November 202385% of those who find it difficult to talk about financial matters have “difficulty discussing their debt problems with family or friends and asking for help,” primarily because they are afraid of how others will look at them and be judged. Also because in today’s society there is a big taboo around money and financial difficulties. But especially when things are going badly, we have to consult and ask for help.

In summary, I invite you to consult a personal finance expert if possible! Don’t necessarily wait until you get into trouble. Even if you think you’re doing well financially, check it out anyway. This is to ensure that you are well protected from possible financial risks. And we all know that life is about the unexpected. Are you sure you have good financial resilience?

If you ever want to take stock of your financial health, I invite you to use this the new financial health self-assessment tool developed by Code F. By answering the various questions, you will find out how your financial health is!

Finally, I wish you happy holidays and good (financial) health!