Healthy finances are regarded as the state of stability of one’s person’s finances. It can be hard to gain financial stability in today’s world but there are steps you can take to get onto the right path towards healthy finances. Here are a few tips and tricks to guide you towards gaining healthy finances.
- Make short term goals – these should be achievable in the short term and focus on what you can change in a short period of time like starting a savings account.
- Make long term goals for yourself. These types of goals are to be achieved in the long term. Set a goal to save up towards something. Having something specific to save for helps you focus and gives you reason to sacrifice the less important expenses and achieve your savings goals.
Make a budget
- If you don’t have budget as of yet start a monthly budget now.
- Review your non-essential expenses but also keep a nice-to-live-by lifestyle for yourself.
- Keep what you value and cut back on the less important expenses.
- Make a realistic and lenient budget for yourself.
- E.g. gym memberships, music subscriptions, extra TV channels theses are examples of expenses that you can cut down on if hardly used.
- Within your budget save for unexpected expenses, like car repairs by setting aside an emergency fund for yourself.
Know where you stand with your Finances
- Regularly check your finances through the month. This allows you to monitor your finances
- Make weekly assessments of your finances to see if your expenses are still in line with your budget. Checking up on your budget regularly will help you to stick to it and make changes where necessary.
Create a savings plan/ Emergency Fund
You can start saving by starting an emergency fund for yourself. An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. To learn more about the importance of an emergency fund click here.
- After you have reviewed your budget. You have an idea with how you will be able to save after all the expenses have been compared against your income.
- When saving, start small and gradually grow with it.
- Have a realistic savings plan for yourself. Don’t try too much quickly.
- Remember in order to be successful with your finances you need to be disciplined and consistent.
- If you want to start saving today, visit Meerkat to join in our new savings plan to reach your goals.
Managing your Credit Cards
- A credit card is convenient up until a certain stage if you are able to manage it properly. It can help to better your credit score if you pay back the money you borrow in full every month.
- Only use your credit card for essentials and things which you can afford so that you do not create a pile of unnecessary debts for yourself.
- Review the interest rates and other features that come with credit cards, if you do get one, get one which is suitable for you.
Pay off Debts
- Having multiple debts can hinder you from healthy finances.
- Debt comes with interest’s rates, low and high rates. The more you delay paying off these debts the higher your debt amount becomes due to the interest it accumulates.
- Start by listing all your debts (student loan, credit card, car loan) and figure out the minimum you need to pay in order to keep up with the current debt.
- Then accordingly allocate amounts
Making these small changes to your life can lead you towards healthy finances. Follow these tips and start your journey towards financial freedom.