financial well-being is important to your health
While the best things in life are free, money is needed to pay the bills; therefore, getting financially healthy is important. One of the biggest stress for many is “finances”. “Do I have enough for a rainy day?” “What will happen if I lose my job?” How about the unanticipated expenses that put a dent in your monthly budge-like medical expenses, the car breaking down, or a new computer is needed.
Worrying about money impacts your total health and that is why improving your financial health is important to prevent and/or minimize the stress created by your financial situation. Making a monthly budget is a good place to start. Take it one step further and have a weekly expense budget for the every day essentials. How much do I need for groceries, transportation (travel to and from work, school, appointments), and incidentals? You may even benefit from a free consultation with a financial planner or advisor.
divide your money into 3 portions
<> The first portion (33%) – is used for your current living expenses (rent, utilities, groceries, etc.)
<> The second portion (34%) – is saved for your retirement.
<> The third portion (33%) – is for the proverbial “rainy days” and for fun and enjoyment. Saving for that vacation you always wanted or that house you have always dreamed of; then again, perhaps it is a car.
when you are saving money, put it into 2 categories
One thing my mother, who was a bookkeeper, taught me, was the value of saving money. When you save money, you save money into two categories: the second portion mentioned above, which is money for retirement (you really do not want to touch until retirement); and the third portion mentioned above, which can be broken down into 3A: for rainy days and unexpected expenses & 3B: for future plans (buy a house, car, vacation, etc.).
6 smart tips from mom
- Never live beyond your means.
- Don’t buy what you can’t pay off in full when the bill comes.
- Work hard but remember to take healthy breaks.
- Don’t lend money you cannot afford to lose.
- Set financial boundaries the same way you set boundaries in your personal relationships.
- Don’t put all your eggs in one basket.