Do you know what it means to achieve financial wellness?
When someone reaches financial wellness, it means that they no longer have to worry about making ends meet. They may not have financial freedom, but they’re able to manage their finances and live within their means.
If you haven’t reached financial wellness yet, we’re here to offer advice. Keep reading to learn more.
Consider Multiple Streams of Income
If it’s possible for you to do so, try getting a secondary stream of income to contribute to your financial situation. For most households, a single income isn’t enough to be sustainable.
Secondary streams of income don’t have to be as profitable as your primary stream. You can start a “side hustle” (but avoid any MLM-style “opportunities).
Consider monetizing a hobby, taking a second part-time job, babysitting, online work, or anything else that you can do to put your skills to use.
Use Tech to Your Advantage
There are plenty of apps and online programs for financial services that are available that can help you get your finances back on track so you can eventually reach financial wellness.
There are plenty of apps that will start making small investments for you whenever you spend your money. You can also find apps that show you money-saving opportunities at your favorite online stores.
Sites like https://www.payactiv.com/ allow employees and employers to work together to establish a financial wellness program.
Too many people choose not to invest because they’re afraid of losing their money. While there’s always a risk when you make an investment, investing is a far better way to reach financial security than throwing your money into an average savings account.
Savings accounts don’t keep up with the rising cost of living. This means that you lose money over time while your money is sitting in the bank, even if the bank adds interest.
By putting your money into the stock market or an IRA, you’ll be able to (slowly) build money over time. Talk to financial advisors to help you if you don’t know where to start.
Get Rid of Debt First
The first step toward creating financial wellness is always getting rid of your debt. Debts accrue interest, so the longer you go without paying, the more you’re going to spend in the long run.
Make sure that you include debt payments in your budget. Try to replace a small portion of both your “non-essentials” and your “savings” areas with debt replacement.
Set (and Adhere to) Your Budget
Speaking of your budget, do you have one?
Setting a budget can be challenging. Most people play it by ear, but if you’re struggling with your finances, you can’t afford to do this.
For one month, keep track of all of your spending. Log every bill, all food purchases, anything non-essential, and anything else that goes into your monthly spending.
At the end of the month, compare that to your monthly income.
You’re likely going to need to make adjustments. We suggest using the 50/30/20 rule as a starting point and then making adjustments from there.
Financial Wellness Is in Your Future
Use these tips to start your journey toward financial wellness. Consider a second stream of income, set a budget, use apps and tools, consider investing, and try to eradicate all of your debt. With enough time and effort, you will no longer be living paycheck-to-paycheck.
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