Tips to Improve Your Financial Well-Being
In the best of times financial wellness is a source of stress for many. When things are uncertain, it can feel like an insurmountable task. The good news is that you don’t have to be a millionaire to be financially well. There are some simple tips that can help you feel more secure for your future, even during turbulent times.
- Do your best to follow the 50-30-20 rule.
- This is a recommended model to split your income. 50% to needs, 30% to wants, and 20% to savings.
- Pay attention to your account balances.
- This might be in the form of keeping a budget or simply monitoring your account balance regularly. The goal is to bring awareness to how much money is coming in, and where it is going when you spend.
- Pay off debts in small amounts.
- Give yourself an early win by paying off some of your smaller loans and keeping making payments toward bigger ones.
- Get to know your money mindset.
- Many people have fear and stress around finances. Check in with your own mindset around money and notice if you have a scarcity mindset (never enough) or an abundance mindset (there is plenty) or something in between, and notice how that impacts your saving, spending, etc.
- Avoid information overload.
- If there is uncertainty in the world, it can be tempting to try and learn all you can. Do your best to not let the news make you second guess your own plans. Give yourself small breaks from information.
- Make financial decisions when you’re feeling calm.
- If you are considering a big purchase, or thinking of making changes to your retirement plan, try to make these decisions when you are feeling calm and centered. Fear can influence our actions, and not always for the better.
- Consult an expert.
- Your financial situation is unique to you. Connect with your 401k advisor or other expert to help guide you through your financial journey.
It is possible to be financially well even when things feel unsettled and uncertain. Try to address one thing at a time and connect with financial experts to help you along the way. Our financial wellness is not necessarily how much money we have, but our ability to navigate daily life in a healthy way.
