Getting ahead financially requires healthy money habits that are both easy and effective. Let’s take a look at five ways you can boost your financial health today for a brighter tomorrow.
- Make Savings a Priority: Nearly 40% of all U.S. households don’t have more than $400 in savings, according to recent data from the Federal Reserve. Instead of using credit to cover an emergency or necessary purchase, build up your savings. Start by treating your personal savings like a bill. Take a percentage of every paycheck and put it into a dedicated savings account BEFORE you pay any bills or do anything fun.
- Make a Plan: What do you want to accomplish? Do you want to buy a home or a new car, send someone off to college, or retire early? Focusing on what you want is the first step. The second step is talking to a professional.
- Spend Carefully: One of the healthiest money habits involves spending. Whether it’s groceries, clothing, or other purchases, look for sales and coupons. The less you spend, the more you can put into savings. Additionally, monitor every purchase and look closely at everything you buy. Are there any areas where you can cut back on your spending? Could you eat out less often? Are there any online subscriptions you can eliminate?
- Insure Your Future: Most insurance policies are something people buy and hope never to use. However, life insurance is different. With the right policy, you can help care for your family when you’re not here. Adding a life insurance policy to your list of five healthy habits to start today provides peace of mind and can protect your finances after you’re gone. While you’re looking at life insurance policies, be sure to get quotes for your home and auto insurance for possible savings.
- Monitor Your Credit: While it might not seem like an obvious healthy money habit, monitoring your credit and boosting your overall score can help you save money. That’s because the healthier your credit is, the better the interest rates you’ll be offered on home and auto loans. To review your reports for free, visit annualcreditreport.com every 12 months. Look for duplicate accounts, late payments, and anything that looks suspicious. If you find anything that seems odd, contact the credit reporting agency that posted it.
Boost Your Financial Wellness
More Financial Wellness Matters blogs on topics ranging from financial self-care to protecting your financial health are coming soon. Twice a month, we’ll dig a bit deeper into the relationship between financial health and overall well-being, shedding light on the behaviors and beliefs that drive money relationships. With simple tips and proven insights, we hope to enhance your financial well-being and help you live a healthier, happier life.