With the local and global economy providing little enthusiasm, it's no surprise that financial security has become the number one concern of young people in Australia.
Getting your debts under control and being aware of your spending habits are two good ways to improve your financial health – especially during difficult economic times when job security and income may become less reliable.
Get your debts under control
Setting up a plan to reduce your debt will put you in a better position than those who ignore or don't plan to manage their debt. Read more on ten tips to getting out of debt and how to manage your credit card debt.
Be aware of your spending habits
The same goes for spending. Being aware of what you spend your money on is an easy – but important – first step towards better financial health. It's a good idea to track how much you're spending each week/month compared to what you're earning. Spending more than you can afford is an indication that you could be at high risk of financial distress.
Understand your credit history
An important step towards knowing and improving your financial health also includes understanding what your credit history looks like. This can be done by getting a copy of your credit report, which will show credit events such as payment history and defaults (payments up that are 90+ days overdue).