There are so many ways to be well. Sure of course taking care of your physical health is a given but what about your financial well-being? Truthfully, if you are not financially well, it can affect your mental and physical health.
Intentionally looking at your finances is essential for building a secure future and living a fulfilling life. From budgeting and saving to investing and planning for retirement, there are countless strategies you can employ to take control of your financial destiny. Let’s explore some practical tips and actionable advice to help you navigate the complex world of personal finance and pave the way toward a prosperous and financially secure future. Whether you’re just starting your journey to financial independence or looking to optimize your existing financial strategy, you’ll find valuable insights and guidance to empower you on your path to financial success.
Take an inventory of your monthly living expenses and income
You might know how much your rent or mortgage is, roughly how much you spend on groceries, utilities, and other miscellaneous expenses, but do you really know how much you 1) bring in each month in deposits and 2) your monthly fixed expenses?
This is the first step in becoming fiscally responsible and thriving. Track where your money is going and identify areas where you can cut back on unnecessary spending, or the more abundant approach is focus energies on not just where you can cutback but where and how you can earn more.
Secure your future with an emergency fund
Building an emergency fund can provide you financial security especially if you have an unexpected medical bill or expense that pops up into your life. Such is life! These days there are so many lay-offs that happen that it might even save guard you if you were to ever get the news of a lay-off. An emergency fund can support you in downturns in your financial income. Many experts say to save at least 3 months worth of living expenses but to be on the safer side, 6 months is a more realistic cushion.
Invest your finances – even if it’s $100
With the money you have saved from your emergency fund, invest this in a high-yield savings account. A traditional savings account through your bank likely will only yield you a fraction of a percentage point per year. However, if you open up a HYSA, this will likely get you closer to 4-5% in return. Why not make a few extra dollars if you can! Outside of a high-yield savings account, ensure that you have a retirement plan opened as well. You may not be thinking about retirement quite yet but as you know, time flies and before you know it you’ll have wished you invested more when you were younger.
Pay attention to your credit score
You may not think your credit score means much but it’s actually the gateway into many meaningful milestones and advancements in your life. If you don’t know what your credit score is, you are not alone. 43% of Americans haven’t checked their credit score in the last year. If you want to get a new car, purchase a home, even rent an apartment, there will be creditors that pull your credit score to see how financially responsible you have been. It’s essentially a number, that can be summarized in a report, that shares with creditors all of the credit and debt that is associated with your name. This is a number that will follow you throughout your whole life so be as mindful as you can be with this as you move through life.
By implementing the tips and strategies discussed here, you’re taking important steps toward building a solid financial foundation for yourself and your loved ones. Stay committed to your goals, remain disciplined in your financial habits, and never stop learning and growing. With dedication and perseverance, you have the power to create the future you desire and deserve. Here’s to your continued financial success and prosperity!
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