Financial wellness is an essential component to one’s overall well-being. Just as exercise and healthy eating are important components toward physical wellness, there are things one can do to achieve financial wellness.
1. Review your current financial situation. In order to get a firm grip on your financial situation you need to thoroughly review your finances. You must have a clear picture of the current state of your finances to carefully select goals that will improve your financial picture. This will require listing all your income and assets as well as bill payments and outstanding debts. You can then understand your net financial worth.
2. Establish financial goals and priorities. It all starts with having goals for your finances and setting priorities for those goals. It is important to write down your financial goals. Make sure they are realistic, and you believe you can accomplish them, otherwise they are wishes. For example, if your goal is to become debt free, write it down along with the reasons why you want to become debt free, and how it will feel to accomplish your goal. Having clear goals with an emotional attachment, along with the reasons it is important to accomplish your goal will help you achieve it. Include the steps you will take such as paying off a small credit card balance by a certain date.
3. Create a budget. Once you have a good grasp of your finances you will need to create a monthly budget that lists your income and all your expenses for the month. At that point you can start to prioritize your goals and make any adjustments to your spending that will help you achieve your goals.
4. Establish an emergency fund. Having money in the bank for when emergencies arise will provide you some peace of mind. There are times in life when unfortunate situations happen and having money you can quickly access will make these times easier to deal with and less burdensome.
5. Pay off debt. Having a clear understanding of all your debt will help you on your path to financial wellness. Debt such as payday loans, installment loans, and credit cards usually carry high interest rates. It is important to understand the interest rate for each debt and focus on paying off debt with the highest interest rate first.
6. Review your progress regularly. At least once a month you should review your financial goals and the progress you are making. If you are having a discouraging month and not accomplishing your goals, do not give up. Understand that setbacks are temporary, revaluate why you want to achieve your goal and continue to take the steps to achieve it.
7. Save for retirement. One day you will want to retire and no longer have to work. Social security only goes so far that is why it is important to contribute to your retirement account. Find out if your employer offers a 401K retirement plan. If not, it is easy to set up an Individual Retirement Account through an online broker or a broker with a physical office location.
Remember, you can achieve financial wellness if you create a plan with realistic goals and timelines. Review your plan often, hold yourself accountable, never give up, and you will achieve financial wellness. If you need help with unsecured debt, such as installment and payday loans, credit cards, cell phone and medical bills, contact Progressive Debt Relief by phone 877.590.1847 or through our contact form for a free consultation.
