Financial Health: Five Strategies

It may seem stressful to be practical and careful with your money. But you can be financially responsible and actually feel more sane and more in control. Being aware and disciplined about your budget can actually reduce stress and improve self-confidence.

Here are five strategies to create financial health or to help cure ailing finances:

1. Make a budget. Determine your income, estimating low. Total all required costs for a year, then divide by 12 for a monthly amount for each category, such as utilities, mortgage, gas, food, etc. Do the same for discretionary spending, totaling receipts, or estimating high. Round off higher for all expenses, lower for income. In other words, if your pay stub says you earn $5,310 per month, figure in $5,300. If you spend $475 per week on groceries, use a $500 figure.
2. Don’t charge regular expenses. Unless you pay off that credit card to a $0 balance every single month, you are living on borrowed money, which is dangerous.
3. Save, save, save. Your best rule-of-thumb is to sock away 10%. Consider it “paying yourself”. You’ll need it for unexpected emergencies, like missing work, losing a job or if one of your children is hospitalized. It can be designated for a yearly vacation or left alone for retirement.
4. Pay off high interest loans as quickly as you can. You might consider the sales of a vehicle or property that is not fully used, or absolutely needed. Use that cash to liquidate interest-bearing debt that stealthily eats away at your livelihood.
5. Don’t spend more than you earn. The amount of expenditures in your budget must total less than your income!!! If not, find ways to cut your spending. Taking a lunch, packing a coffee mug, and using a refillable water bottle are simple ways to reduce undisciplined spending.

Spending time on your budget is not wasting time. It is time invested in your future. You can do this over a weekend. Then, move forward with small ways to conquer debt, live within your means, and save for a rainy day.

You’ll be able to relax more, sleep easier and discover that you are….financial healthy.

Written by: Ruby Mosely,Rust Built, Marketing Services