1) Track your spending for a three-month period
Keeping tabs on your expenses over 90 days is like giving your spending habits an annual checkup. It helps make it easier to decide what’s worth the money and what’s not.
2) Create a budget
Now that you’ve put your spending under the microscope, it’s time to set up a budget. It’s like giving your money a roadmap to tell it where to go and what to do. Having a plan makes handling your money far less stressful.
3) Manage your debt
Debt can be like a house guest who overstays their welcome. When it starts to get out of control, it’s time to show it the door. Carrying some debt is normal, but too much can overwhelm your budget and impact your credit score. That’s why monitoring your debt is a key component in establishing financial wellness.
4) Make automated savings deposits a habit
With all the other distractions in our daily lives, it can be easy to lose track of your intent to save. Try a savings strategy that automatically deposits a portion of your earnings into your retirement plan and emergency saving accounts so you’re not spending time moving money between accounts.
5) Create an emergency fund
Setting aside cash for emergencies can help you prepare for unexpected financial setbacks like a job loss or illness. Without it you may find yourself with sudden debt. Financial professionals recommend having an emergency savings fund with at least three months’ worth of expenses — six to nine is even better. Work within your budget to create an emergency savings plan that makes it easier to bounce back.
Implementing these five tips can help you make significant strides towards improving your financial wellness. Remember, small changes can lead to big results when it comes to managing your money – and when you need help, we’re always a call away. Celebrate Financial Wellness Month by taking action and setting yourself up for a better 2024 and a prosperous future.
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