Don’t you just wish that you could buy anything without thinking about the consequences later? Unfortunately, that’s not the case for most of us.
In fact, a study by the American Institute of Stress in 2019 revealed that 62% of Americans are stressed about money on a regular basis. This can affect one’s mental, emotional and psychological wellbeing in the long run.
That is why it’s no surprise that many people seek financial wellness or the state where one can effectively manage his economic life.
It means spending within one’s means, making good financial decisions, being financially prepared for emergencies and securing one’s financial future.
While this sounds like a tall order, it’s actually possible to achieve financial wellness. Here are some tips to help you get started:
Set a bar for yourself
There’s no one-size-fits-all rule when it comes to achieving financial wellness because we all have different needs and lifestyles. But if you are going to be financially independent, you need to set a bar for yourself to live up to.
What is your ultimate financial goal? Do you want to own a house and car by the age of 32? Are you planning on building a business? How do you see yourself 10 years from now?
By having these set of standards, it would be easier to picture out what you want to achieve and plan on how you want to achieve things.
Build a reliable income source
Of course, you need to make money to be able to manage it well. Being the cornerstone of financial wellness, it’s very important to achieve income stability.
While you don’t need to be a millionaire, having a reliable income source will give you more legroom in making financial decisions and continuing to build your wealth, so you can enjoy a better quality of life.
Many successful people don’t stop when they’re already earning well. In fact, they continue to live below their means and add to their earnings through investments.
Evaluate your finances regularly
Accounting may not be the most enjoyable task, but it’s necessary for maintaining your financial wellness.
Keep a regular track of your spending versus your income to know if you are living above your means, so you can make necessary changes before things get out of hand.
It can be frustrating to sit down and realize how much debt you have or how much money you wasted on unnecessary things. But facing your financial situation is the first step to fixing your problems and doing better moving forward.
Create and stick to your budget
We’ve all heard this from our Moms to our teachers—it’s very important to stick to a budget. Being financially independent entails a lot of sacrifices but giving up short-term happiness for long-term stability is definitely the best way to live your life.
A budget plan will allow you to stay on track with your financial goals because you’re seeing where exactly your money is going. It’s also easier to see where you’re overspending and how you can make adjustments so you can stick to your goals.
Aside from your household expenses, you also need to set aside a monthly contribution to your emergency fund if you still don’t have one.
Always look forward to the future
Financial wellness is all about living your best life not only today but for the future. This is why it’s very important to always look forward to what you want to achieve, so you can make allocations on your budget for those goals.
Aside from having an emergency fund to cover you on the rainy days, you also need to build your savings, so you’ll have something to use for future plans like buying a house, making investments or just simply enjoying life when you’re not working anymore.
At the end of the day, achieving financial wellness is all about having the right mindset for it. When you commit yourself to being financially independent, it’s easier to make smart decisions that will help you move forward towards achieving your financial goals.
It’s not just about buying the things that you want but also giving your family a good quality of life in the long run.