Your financial well-being is just as important as caring for your body and mind. If you care about food or spent a little more than intended to give gifts, it is natural and healthy – seek suggestions on how to reduce excess. Maybe you’re coming close to retirement and you want to focus on increasing your savings for the post-work years, or buying a home is scheduled as your primary goal. Whatever your goal this year, here are the top tips for improving your financial health in 2018.
1. Remove debts on credit cards
It is true that making debts can be leveraged to help when you are involved in your car’s financial problems, sudden health related emergencies and so on. However, interest rates are an additional expense that delays the process of investing money in other more lucrative places.
Instead of paying interest rates, this money can be turned into a financial work partner, putting the amount into savings, or into an investment portfolio. Certainly, maintaining a healthy credit score is part of the money management system. However, if you are the type who can not pass up a purchase with your credit card to pay more things, the destabilization of the credit card is a resolution for you to seriously consider. Pay yourself first, not the credit card companies.
2. Maintaining a budget is crucial
All items in this list take you back to budget. It is easy to become indebted to the constant stream of entertainment or online shopping on sale. Coffee cups every morning before work or weekly dinners at your favorite restaurant, can be included – although giving it up for a month, or three, is not exactly a deprivation. At a minimum, monitor your expenses for a week to determine where your money is going. Then start to narrow down the little things within each budget category.
3. Saving, saving, saving
While savings and budgeting are intertwined, this category justifies its own emphasis. While you have set your budget and reduced non-essential numbers in each budget category, be sure to include a target amount to save per month. Your target savings amount is what you would need for three to six months of expenses in case your income stream is disrupted. Yes, it’s that simple. The challenging part will reduce old spending habits. However, with diligence and focus, you can train your brain to keep its course with its intent. Remember that intention flows to where our attention is.
4. Investment Engagement
As with everything on this list, choosing an investment instrument is a highly personal endeavor. There is so much to choose from. Every investment opportunity is balanced against a certain amount of calculated risk and, given the variety of financial products available, there is one sector for each level of risk. A significant initial financial investment is not always necessary for your money to work for you. Even if all you do now is transfer $ 100 a month to a savings account, it’s already a small initial investment step (and you’re ultimately investing in yourself), so you’re cultivating a habit that can provide much greater security for a long time – you’re on the right track.
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