If you’re keen to get a hold of your finances, there are some simple steps you can take. Financial wellness refers to the idea of being resilient and
If you’re keen to get a hold of your finances, there are some simple steps you can take. Financial wellness refers to the idea of being resilient and empowered when it comes to your finances. The long-term impacts of this are that you’ll feel less stressed about money issues and be less prone to further stress on your mental health. It’s worth noting that achieving a healthier financial life involves a holistic approach, where you implement several changes to your habits. Here’s what you may want to consider.
Establishing a strong financial foundation
The first step is to evaluate your current financial situation. This means looking at your income, expenses and any debts you need to pay off. The creation of goals is a great way to apply a tailored strategy to your finances going forward. Tracking your finances is another good move, as it will help you get to know your spending habits and identify any adjustments that might need to be made. This can be done with spreadsheets or on-the-go budget tracking apps.
Outside of your own finances, taking time to read books, listen to podcasts and enhance your general knowledge will be hugely beneficial. This way, you’re more likely to spot financial announcements and opportunities when consuming the news, for example.
Building positive financial habits
If you’re planning to improve and maintain your credit score, there are a few things you can do. Simple acts such as resolving errors in your credit report, and ensuring you’re registered to vote will help. In the meantime, avoid opening too many new bank accounts in a short period.
On top of this, you should set aside savings each month where possible. If you set up a direct debit, it means you won’t even have to think about it. In the meantime, this can help you build a pot for emergencies and long-term goals. Embracing an open approach to finances by speaking about them with friends and loved ones will also help to improve your understanding over time, plus you may even pick up tips or be able to work collaboratively.
Navigating debt and achieving financial goals
If you have more than one debt to pay off, make sure you prioritise the high-interest debt. It’s all about celebrating small wins, so don’t get too overwhelmed by the prospect of completing large financial tasks or goals. More often than not, it’s a gradual process. If you implement a strict budget that dedicates a set amount to paying off debt each month, you’ll be able to make more progress than you might expect.
What about you, do you feel as though you need to put some steps into action to improve your financial life?