There is much emphasis upon wellness today. This term covers the improvement of your overall condition such as mental, environmental, intellectual, emotional, physical, occupational and financial among others. This article covers a few major aspects that can lead to your financial wellness.
1. Live within your means – this of course, makes sense, but you will be surprised to know that one in every five Americans spend at least 20 percent more than they earn. This is where plastic money, loans and payday checks come in handy; and this is the way that leads straight to bankruptcy. You need to aim to live within 80-90 percent of your income. Use the rest for savings and investments.
2. Pay the credit card bills first – the debts that you incur by using credit cards is the one you pay the highest interest for; hence, you need to pay these bills first and in full. Do not get caught in the trap of paying only the minimum due. You will be charged compounded interest on the outstanding, which will grow at an alarming rate.
3. Ensure you have your own safety net – disasters happen. You lose your job, you fall sick, you meet with an accident, you have a death in the family and so on. Bad things happen. Ensure that you have stashed away an amount that will keep you comfortable for at least six months. Ideally, your safety net should cover you and your family for 12-18 months.
4. Learn to invest - and do so – saving and investment should go hand in hand. Do not let your money lay around in a low interest bank account. If you are not financially savvy, seek professional counsel and make low risk investments so your money will grow over time.
5. Health insurance is vital – everyone becomes sick one time or another. Sometimes, the illness is minor and sometimes it is major, requiring intensive care and hospitalization. It is always good to have you and your family covered for such eventualities. This is not a case where you should act thrifty! Good health insurance can make your life very easy, when the time comes.
6. Have a will drawn – many complications will be spared if everybody decides to leave a will behind. Your family should know all about your monies and division of your property through a will. This will also give you immense peace of mind.
7. Put a budget into place – plan all expenses, big and small. Do not indebt yourself to the maximum possible extent, because often things do not go as expected and too large a debt burden can be a horrible liability during an unforeseen financial crisis. Make it a solemn point to stay within your budget always. In order to stay cool on this aspect, you need to budget for ‘fun’ expenses – but these should not be more than 5-10 percent of your total monthly expenses.
8. Charity is important – financial wellness does not come by looking exclusively at yourself. It is important that you give 10 percent (or at least 5 percent) to charity. The fact that you are able to do your humble bit towards helping the underprivileged will give a wonderful feeling.
9. Value for money is paramount – do not re-decorate your home just because your neighbors did it. Keep the competitive spirit at the intellectual level. Do not give in to "keeping up with Joneses" and aiming to always buy one grade better than your neighbor. Spend only when you are convinced that you get full value for your money.
10. Continue to improve yourself – it doesn't matter what level you've reached in your career or business. There is always something more to learn and you should use every opportunity that comes along to advance your skills and intellectual capacity. The better qualified and experienced you are, the better you will do financially. In addition, the better you will feel about yourself and about your life!
Look at these 10 points. Each one of them is easy to follow. Together, they can induce finance wellness for you. Are you ready to be comfortable with finances?
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