As spring approaches, it’s the perfect time to refresh and revitalize your financial strategy. True financial health isn’t just about the numbers in your bank account—it’s about taking control, minimizing stress, and building your future with confidence. With rising inflation and an ever-changing financial landscape, staying ahead requires a proactive mindset.
Now is the time to reassess, refine, and strengthen your financial foundation.
Here are 10 strategies to boost your financial health this year:
1. Ensure Your Income and Spending Are Balanced!
The foundation of financial health is knowing where your money is going. Use banking apps, budgeting software, or even a simple spreadsheet to track spending. With the rise of buy now, pay later services and easy credit access, overspending is a growing risk. Avoid relying on debt to maintain your lifestyle.
2. Develop a Realistic Monthly Budget
A budget isn’t about restriction, it’s about priorities. One simple strategy is utilizing the 50/30/20 rule, which is where you allocate 50% of your take-home pay toward needs, 30% toward wants, and 20% toward savings. Whether you use this rule or a more detailed plan, make sure you’re allocating funds to necessities, savings, and investments. It can also be beneficial to leverage automation by setting up scheduled transfers to savings and retirement accounts. You won’t even notice the money skipping your checking account, but watching your savings steadily grow is both effortless and empowering.
3. Strengthen Your Emergency Fund
Many Americans struggle with unexpected expenses, with only 54% of adults saying they had a “rainy day” fund to cover three months of expenses, according to the Federal Reserve. Aim to have three to six months of living expenses in an accessible bank account. If that seems daunting, start with smaller goals, like saving one month’s worth, then build from there!
4. Prioritize Retirement and Long-Term Savings
With Social Security uncertainty and life expectancies at an all-time high, retirement planning is more important than ever. Maximize employer 401(k) matches, contribute to IRAs, and explore tax-advantaged investment accounts. Automating contributions makes this effortless!
5. Seek Input Before Major Financial Decisions
Before making large purchases or financial commitments, seek input from trusted colleagues, a spouse, or a financial professional. External perspectives can help ensure your decisions align with your long-term financial goals.
6. Regularly Monitor and Adjust Your Financial Plan
Your financial plan should evolve as your life changes. Review your progress quarterly and adjust your investment strategy as needed. Keeping up with changes in tax law and market trends will also help optimize your approach. Trajan Wealth regularly shares insights on financial news and market outlooks to make keeping up with the latest trends a breeze.
7. Stay Financially Educated
With financial scams, rising interest rates, and economic shifts, financial literacy is more important than ever. Stay informed about investing, debt management, and market trends through books, podcasts, and professional advice. Of course, we’re here to help! Check out our education center for videos and more. The more you know, the better financial choices you’ll make.
8. Work with a Financial Professional
Even if you feel confident in managing your money, a financial professional at Trajan Wealth can provide insight on tax strategies, retirement planning, and investment opportunities you may not have considered! They can also help navigate major life changes, such as home purchases, career switches, or estate planning.
9. Keep Emotions Out of Financial Decisions
Allowing your emotions to influence your financial decision making can often lead to making decisions that do not align with your long-term goals. Whether it’s investing during market volatility or making impulse purchases, emotional decision-making can be costly. Stick to a long-term strategy and avoid reacting to short-term fluctuations.
10. Find Small Ways to Save Every Day
With inflation impacting everyday expenses, small savings really add up! Negotiate bills, get rid of those pesky unused subscriptions, and take advantage of cashback apps. Even small habit changes (like cooking more meals at home) can lead to significant savings over time.
Start Your Financial Health Journey Today
Financial health isn’t a one-time achievement; it’s a lifelong journey. By making intentional and strategic decisions today, you can build a more secure and stress-free financial future.
The experts at Trajan Wealth are ready and waiting to help you! Take the first step and contact us today! Let’s start building a plan that works for you.
