Is a healthier lifestyle on your list of New Year’s resolutions? Don’t forget to make your financial health a priority, too. Follow these four simple strategies to boost your financial well-being.
Create an emergency fund. One thing that’s certain in life — unexpected events happen. Cars break down, medical bills come due, and job losses occur. Experts recommend setting aside at least six months of income so that you’re not forced to go into debt when emergencies happen.
Pay down credit card debt. Paying only the minimum on your credit cards is like eating a candy bar while running on a treadmill: You’re racking up calories as soon as you burn them off. To shed that unwanted debt quicker, put as much as you can each month toward the card with the highest interest rate. Then repeat that process until you’ve paid each card off.
Spend mindfully. One of the reasons diets often fail is that they feel too restrictive. The same goes for cutting back on your expenses. The key is not to deprive yourself of spending money, but rather to spend on the things you really love and cut back on the things you don’t need. Just remember to live within your means.
Focus on building wealth. Managing your spending and saving consistently are vital to your financial health. Beyond that, make smart investments so your money can grow. Your 401(k), real estate, and your investment accounts are avenues that put your money to work and help you build financial stability.
