But when it comes to wealth, it's as important that you do a regular checkup for your financial health. You need to know where you are financially before you decide what you want to achieve financially.

What do you do to ascertain your level of financial fitness?

You can use financial statements to determine your financial fitness. They are income statements and balance sheets.

It sounded boring and alien to me when I first prepared my income statement and balance sheet. The process is tedious as you need to dig out things and get them organized in a proper format.

But I can tell you once you've done this checkup, you'll have a clear picture where you stand financially and you can take necessary measures to achieve financial freedom.

Besides that you'll be more in control of your money and know how to spend your money wisely.

Let's get started to determine your financial fitness.

---------------- Income Statement ----------------

First, you can prepare an income statement. An income statement is also called profit and loss statement. An income statement consists of two sections: monthly income and expenses.

Your income would probably comprise salary, rent from real estate, dividends from stocks and bonds, interests from savings accounts, and royalties.

Credit can be your #1 asset or your worst enemy. The trouble is, it can be a very stressful experience when an unsuspecting person find out there's something wrong with their credit. One minute you feel you can buy up world, and next minute, you're told your credit is denied! All of a sudden, your credit is not as welcome as someone who still has their good credit. It's a situation that affects so many, especially when applying for new credit.

Without good credit, people soon discover it's difficult to live without necessary items that are needed. Unless you know how to improve, increase and repair your own credit, you will have to overcome many obstacles. Items such as new cars, houses, even rental properties and job placements can become very difficult to obtain. However, it doesn't have to be this way! This is why it's so important to know how to use your credit- no matter how good or bad- in your favor!

Bankers and lenders in certain geographic areas usually will turn to one credit reporting agency. There are many, however, that subscribe to more than one. That can work in your favor because in many cases your complete credit history will never be accessed by a credit bureau located in another area.