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 can put a dent in your monthly budget-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 everyday 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

1st portion (33%) – is used for your current living expenses (rent, utilities, groceries, etc.)

2nd portion (34%) – is saved for your retirement

3rd portion (33%) – is for the surprises. This portion of your money is for the rainy days (unexpected and sometimes unpleasant financial surprises); special plans; and fun things (for we must enjoy living).

 

 

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:

I: MONEY YOU DO NOT TOUCH – the second portion mentioned above, which is money for retirement (you really do not want to touch until retirement).

II: MONEY SAVED FOR SURPRISES (good and unpleasant) – the third portion mentioned above, which is divided into:

IIa: Rainy day and unpleasant surprises

IIb: Good surprises (buy a house, car, vacation, etc.).

6 SMART MONEY TIPS I GOT FROM MY MOM

• Never live beyond your means and pay yourself first.
• Don’t buy what you can’t pay off in full when the bill comes.
• Work hard but remember to take healthy breaks (reward yourself for your hard work)
• 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 (have multiple streams of income)