Financial wellness does not mean earning more (though that helps); it means living within your means so that you can enjoy the money you do have – and ensuring you do not default on any payments.
5 crucial financial wellness tips to keep worries out
Not managing of your finances also means that you have nothing much in your bank when some crisis strikes you. Here are crucial financial wellness tips that you can consider for a better future.
1. Live within your means
Pledge to your self that you will not live beyond your usual means. This implies that you will not indulge in overspending as a habit. Spending more than you earn will surely plunge you in debts, which is a starting point of your financial disaster. Hence, chalk out a good expenditure plan for the month by considering your monthly income. A good way to live by your means is to make monthly savings compulsory for you.
2. Clear your credit card payments
If you use credit cards, one of the most useful financial wellness tips is to make it sure that you pay off the dues right away. Do not delay in clearing monthly credit cards payments. This is because credit cards are the most expensive debts. You will be paying interest at very high rate, which means you may end up paying a huge amount towards the credit cards company. Therefore, pay off credit card balances and avoid expensive interest outgo.
3. Make a crisis fund
Save for six months crisis. Make it a rule that you always have funds that can take care of your expenditures for six months in case you face a crisis. For instance, you may lose a job and you may need support for many months before you find a new job. Once you have saved for six months, do not stop saving. Keep contributing and let the fund grow as much as it can so that you are able to use the savings for bigger purposes.
4. Make good use of company-sponsored saving plans
One of the financial wellness tips that every expert would like to offer is to invest in saving plans that your company sponsored. A major benefit of these plans for the employee is that the company contributes equal amount of money towards the saving fund. This surely is a good way of accumulating lots of money as saving.
5. Consult experts
Do not take financial decisions on your own, as you may not be having enough experience. Consult a financial planner to help you make right savings and other financial plans.
Advice to keep good financial health
• Look for increasing your earnings
• Keep a certain amount of money for savings
• limit your list of expenditures.