Debt And Your Financial Health
23 August 2022
3 Mins Read
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Wouldn’t it be nice to know you have enough money not only to cover your monthly bills but things you regularly enjoy, as well?
Wouldn’t you like to have the wherewithal to live the lifestyle you want? Well, all that’s possible once you gain financial stability.
Read on for more about debt and your financial health.
Financial Stability
We’re not talking here about achieving affluence, however nice that would be. Rather, financial stability means you have savings for future goals and emergencies and that you are debt free. It means that you can stop worrying about money and pay more attention to other areas of your life.
Here are some ways to help you gain financial stability:
1. Focus on Your Own Finances
The emphasis here is on your own financial situation – not someone else’s. Do not compare yourself to others. Sure, you may see on Facebook that some friends have taken a fun trip abroad.
However, you don’t know whether that excursion was put on plastic – to be dealt with later – or whether other bills will temporarily go unpaid. Let the “Joneses” be.
2. Invest in You
Exercise, eat right, get enough sleep, limit stress, and obtain the employability skills you need to get you where you want to go. The stock market notwithstanding, the most important investment you can make is in YOU.
3. Find a Job You Like
It’s not rocket science: if you have a job that you enjoy, you’ll likely perform better. So, perhaps that means changing careers or employers, or freelancing until you get the position you want.
4. Establish a Budget
You’ve likely heard that advice a gazillion times, but it’s for good reason. You simply must know how much you’re spending, and what you’re spending on. Make sure the budget you make has room for “wants” as well as “needs.” That’s the only way you’re going to stick to it.
5. Live Under Your Means
You’ve likely heard this advice a lot, too. And we know: easier said than done. But seriously, doing so will make things much easier on you, and is vital to your long-term financial success. Otherwise, you won’t have any money to grow, and you may stay in debt. That’s why that budget’s so important.
Related: 4 Tips on How to Take Control of Your Finances
6. Establish an Emergency Fund
You don’t want to have to whip out the plastic for every emergency, a car in need of repair, or an unexpected vet bill, say. That’ll just keep you in debt. Aim for $1,000 in emergency savings to start, then work toward six months of living expenses in case something goes left with your job. Your financial health depends on it.
7. Erase Those Debts
As we mentioned up top, part of being financially stable means being debt free. So, once you create an emergency fund, start tackling those non-mortgage debts, including credit cards and student loans. The latter you can, indeed, pay off earlier, even if the payment plan is for 20 or 30 years. Help is available at Achieve.
8. Save for Your Golden Years
If you’re still young, it may be a stretch for you to envision a time when you won’t have a salary. However, that day will come, and you’ll still want to travel or take classes or whatever it is you’ll want to do, but that takes money beyond what you may get from Social Security.
Take advantage of any 401(k) plan your employer offers, particularly if it offers to match. Or you can open an individual retirement account. Otherwise, squirrel some cash away each paycheck for your retirement years.
Ultimately, when it comes to debt and your financial health, the goal is financial security. Saving and clearing your obligations will give you peace of mind and free you to focus on other areas of your life. If you’re already in over your head with debt, you may want to contact Freedom Debt Relief.
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