information.
If you’re anything like me and have a goal to be more financially healthy this year, then this article is for you.
It’s no fun to say, but many of us have a spending problem. We have a habit of earning money and then going off and spending it as quick as we can. Then we are stuck living paycheck to paycheck, with a load of financial stress over our heads.
In 2018, I began to budget and I must admit that I learned a lot from it and saved much more than I expected. But of course, there is always room for improvements, growth, and more money.
So, I have put together a list of tactics to be more financially healthy this year and I thought it could be helpful for you as well!
1. Save 10% of your income
No one said saving money would be easy, but it is definitely worth it!
Imagine earning an average of $1,000 a week. Just by saving 10% of your income each week, within a year you will have saved over $5,000!
Clearly, putting aside a percentage of your income will build up and prove results for itself.
An easy way to make this 10% safe and less tempting to use, is to make it an automatic transfer.
In October of last year, I set up with my bank account to allow automatic transfers to my savings. I have enjoyed watching the account grow ever since!
2. Tackle your debt
Are you experiencing the “financial stress” of being in debt?
If so, you are not alone.
There are thousands of people in this stressful situation, but you don’t have to be one of them anymore!
Make 2019 your year and pay off all your debt.
The best way to do this is to:
-avoid credit cards (they can get you deeper into debt)
-use debit cards (can keep you in a positive balance)
-pay down balances (any and all of them)
Once you have accomplished this, you will already begin to feel much more financially healthy.
3. Increase your credit score
If you have ever tried to rent an apartment, buy a car, or apply for a personal loan, then you know that your credit score matters.
Employers, landlords, managers, bankers, and more will all take a look at your credit score.
This allows them to view your credit and see how you manage your money, they then can decide if they want to work with you or not.
With poor credit, you are truly hurting your finances. Not only can it affect what you drive, where you live, your payments, and your other monthly bills. But, it also can affect your job search and your ability to start your own business.
Since I just started building credit while in college, I am still working on ways to see the growth as quickly as possible.
By increasing my credit limit and paying everything due ahead of time, I have noticed an increase already in the past month.
4. Increase your retirement savings contributions
Retirement savings have recently been rising over time and it’s never too late to start saving!
To be honest, I actually just started saving for retirement this year. I know it isn’t a large amount but I’ve learned that with compound interest, I will eventually benefit from starting so young.
Compound interest allows your savings to grow, it is the money you earn on your balance from your bank and all the interest that the money earns.
Something I have been reminding myself when it comes to saving for retirement is, “spending it all now could mean that I will have to pay for it later”.
Of course, I am not stating that you shouldn’t spend any money now and save the enjoyment for the future.
I just know that with some extra savings, I will be able to live more financially healthy. It will help keep me less stressed knowing that I have enough money to meet the basic needs and live comfortably. Setting up automatic savings can assure that you are setting aside money from each paycheck.
5. Invest smarter
Almost every majorly wealthy person that I have spoken to has invested at one point or another.
Investing isn’t just something you should do and put on autopilot.
It is a decision made in order to allow your money to grow. And there are a variety of ways to do it – stocks, deposits, bonds, certificates, long-term, etc.
Find out which one is best for you and your financial goals, develop a plan, and get started!
Even though it was last on this list, investing is an awesome way to meet long-term life goals and become financially healthy.
Will you invest?
Will you be adding these strategies to your financial goals for the year?
Learn How To Successfully Start Traveling On A Budget
Read why we should put Personal Matters > Business Matters
Find out Why You Must Start Celebrating Small Wins To Reach Big Goals
Remember... no matter what challenges you face,
Take it 1 Day At A Time.
