As we wrap up 2025 and prepare for a fresh start in the new year, many of us begin thinking about our new year’s resolutions. Most of our resolutions revolve around health-related initiatives like going to the gym, eating better, starting a new diet, and even signing up for marathons. But how many of us actually make resolutions for holistic health – physical, financial, and mental?

Let’s begin 2026 by looking at health in a more holistic way, i.e., physical health and financial health. Financial health matters not only because it reduces stress, but also because it enables us to enjoy a better lifestyle, whether that means buying organic groceries, joining a premium gym, spending on nature-based activities, or indulging in aspirational products.

So what could be part of your financial health checklist for the new year?

Let’s start by knowing more about your financial health. Just like we monitor our physical health stats on our phones or wearables or other devices, it’s equally important to track your financial health score, especially the credit score. Today, all bureaus offer one free credit report per year as mandated by the regulators. Also, many banks and financial institutions provide free access to your credit report based on your relationship with them.

But just like certain health metrics such as weight, BP, sugar levels – need more frequent tracking than an annual check-up, your credit score also needs regular monitoring. This is especially true if you frequently take small-ticket loans, use Buy Now Pay Later facilities, or use your credit card actively. Checking your credit score more often, monthly or quarterly, can help you track your credit usage and repayments. This ensures there is no misuse of your documents or incorrect entries.

The second financial healthy habit is building a balance between credit and investment. For large purchases or asset creation, it can be sensible to use credit instead of using your cash reserves. Many financial experts suggest that cash in hand should ideally be invested to earn returns, while credit can be used to delay outflow.

However, it is crucial to compare the total cost of the loan, which includes interest payable over the term of the loan plus fees, if any, against the interest you expect to earn by investing. Following this approach will optimise the use of funds.

The third financially healthy habit is ensuring repayment of EMIs in a timely manner. EMIs for all traditional loans are usually on auto-pay through mandates or post dated cheques, but your credit card payments should also be registered on auto-pay. It is extremely important to pay your credit card dues on time, at least the minimum amount due, if not in full. Any misses or delays in repayment can negatively impact your credit history and lower your score.

The fourth habit that is financial health is to remember that while taking loans helps you create assets, the loan itself is a liability. Make sure that the total EMI due across all credit facilities fits comfortably within your current income and realistic future earning capacity. Avoid over-leveraging yourself or committing to loan payments that may become difficult to manage in the future.

This new year, let us not focus on just one aspect of our health, but aim for a more holistic approach for ourselves as well as our families. Being healthy is not only about setting fitness goals for the new year, but it is also about feeling secure and stress-free about our finances. When the financial health is secure and strong, it supports every other part of life. This new year, let us follow these five steps to stay healthy while becoming financially stronger, building a balanced life that keeps your body fit, your mind steady, and your finances secure.

Sachin Seth, Chairman CRIF High Mark and Regional MD CRIF India & South Asia

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Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates and hidden charges. We advise investors to discuss with certified experts before taking any credit.