We all know that looking after your health is important. You need to get some exercise every day otherwise you could start to see the repercussions of your decision if you don’t.
Well, today I want us to look at the health of your finances as well because they are just as important if you want to be able to enjoy some sort of “good lifestyle.”
I’m not just talking about being able to go on holiday when you want (which is nice and I have nothing against nice) but I’m talking about being able to breathe without feeling as though the life is being choked out of you each time you have to think about money.
We all have money problems from time to time and if we are being wholly honest a lot of it could have been avoided if we had simply made better financial decisions prior to that moment.
Let’s take a look at how to improve your financial health so you can have a better future.
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7 Tips On How To Improve Your Financial Health
1. Revisit Your Finances
I know this tip sounds extremely boring but the truth of the matter is that if you don’t take a really good honest look at your finances everything you do beyond that will likely fail.
No more spending money on a whim. Sit down and take a good hard look at your finances to make sure that you are actually able to afford your bills each month.
I know its easy to sit there and say well they get paid each month but that’s not really good enough if each month you are going further and further into debt or overdrawn because of it.
It’s easy to dip your toes into an overdraft facility and before you realise it you are full-on drowning. I know because I have been there myself and it’s not nice.
Create a budget so that you can see exactly what you are bringing in each month and where exactly your money goes each month.
If you have a partner make sure you do this together as you need to come to an agreement on the things that you need and perhaps things that you need to get rid of or put on hold for the time being.
2. Automate Your Savings
Saving are really important but for some reason, people seem to think that savings can wait until they are a little older or until they get a little more financially stable.
Well, let me just burst that little bubble for you now because if you can’t save now you won’t save later.
How many times have you had a bonus at work or pay rise then all of a sudden your lifestyle expenses go up?
I’m not here to judge you for that because it’s an easy thing to do and I think we have all done it at some point or another.
Saving has to be deliberate. It doesn’t matter if you can only save £1 a week or £5 its more to do with the deliberate action that builds good habits.
If you are located in America then Acorns is a great way to start putting aside money on a small scale. You can check out Acorns here.
Since we are talking about saving money then you should already have an emergency fund in place too. Without one, you are walking a very tight rope financially.
I can’t tell you the number of times my emergency fund has helped me out of a pickle.
True story. Recently my youngest had had an accident. He managed to bang his head on some concrete and made a massive cut on his forehead.
We weren’t in the UK at the time so we had to go the private medical care route. Thankfully my emergency fund was able to cover the cost of the hospital so I didn’t have to worry about the financial implication as well about worrying if he was going to be ok at the same time.
Having a financial back up can give you a good nights sleep.
3. Set Goals For The Coming Years
Having goals are so important if you want to succeed at something.
Goals push you when you need to be pushed and they help you stay or track and keep you motivated.
If you want to move house in a couple of years time set a goal for it so you can stay on track. The last thing you want to do is wake up one morning and realise that you haven’t planned well enough and now have to panic to put things in their financial place.
Most people that you meet who are successful with money are that way because they deliberately plan for it. Only a small percentage of people in the world will ever just fall into money and it becomes life-changing for them.
Most of us have to work for what we want.
Dream big and set some healthy financial goals.
4. Look Into Investing
Most of the time when people think about investing it can sound a little scary.
You might think that you need a financial advisor which will cost you lots of money. I mean you are trying to make money here not spend it!
I get all of that but today investing doesn’t have to be as difficult as it was before. There is a whole lot of jargon out there set up to confuse you but with a little research, you can do it on your own.
One of the best books I ever read about investing was called Financial Freedom by Grant Sabatier.
If you don’t know where to begin with investing, start with this book. It really will transform your thinking about your financial health.
5. Take A Good Look At Your Pension Plan
We often overlook our pensions because we feel it’s all set up for us but have you actually really taken a good look at it?
How much state pension will you be getting each week? Will that really fulfil your financial needs at the time that you need it too?
If not then you need to do something about that now rather than later.
You may need to consider private pension funds or other ways to make money for when you retire which leads me onto my next point.
6. Consider The Hustle
We all have to hustle sometimes it’s as simple as that.
Just got an extra bill through the post that you hadn’t planned on? It can completely throw you off your financial game.
This is why having multiple streams of income is so important.
Everyone is good at something no matter how small it is. It could be knitting or dancing. No matter what it is there is usually a business to be made out of it.
The great things about a side hustle is that you can do it on your own terms.
If you need to make quick cash then I would highly recommend you try proofreading. Yes if you can READ you can make some side hustle money out of it.
Work from the comfort of your home and only when you want to make some extra cash. You just can’t get better than that.
7. Get Rid Of Those Debts
Having debt is like having a ball and chain around your ankle. It forever holds your back when you want to do something that is important to you.
Unfortunately, debt doesn’t just go away by itself you have to use an action to do that.
Make it a goal to put your debts in order and begin to pay them off as best you can. You can use the debt avalanche method to help you.
Having a side hustle can be great for that as it doesn’t affect your current expenses.
Once your debt is gone the air outside just feels fresher and you can sleep a little bit better too.
Final Thoughts On How To Improve Your Financial Health
It’s easy to live life and not consider the future but the reality is that you have too.
You can’t spend your life living from paycheck to paycheck and not really getting anywhere. You need to take deliberate action if you want to become more financially stable.
If you are surrounded by debt and can’t really seem to work out your financial position take a look at my budget workbook which will help you to take a close look at your finances and really plan for the future from today.