10 Tips to Develop Financial Wellness This Year

Budgeting for financial wellness

Financial wellness is a state of being when one is in control of their finances, can cover expenses, and save for future goals. Consider financial wellness as your relationship with money; it can be either healthy or unhealthy. Financial wellness is essential to being financially secure and meeting your goals. Here are ten tips to help you develop financial wellness this year:

Tip #1 – Check that your income and spending are in balance

You must be aware of your spending patterns, limit your use of credit, and be mindful of not spending more than you make. Review your online banking, bill payments, and credit card statements to ensure you’re not overspending.

Tip #2 – Develop a monthly budget

A monthly budget helps you track exactly where your money is going so you aren’t living paycheck to paycheck due to overspending. Budgeting can help you save for retirement and create a plan to pay off debt. A budget can also help you learn to live without wants because you can see where your hard-earned dollars are going.

Tip #3 – Save money to cover unforeseen emergencies

Ideally, save three to six months of living expenses in an emergency savings account. Once you reach six months of emergency savings, continue saving in your emergency fund until you reach another milestone, such as one year of living expenses.

Tip #4 – Consistently save for retirement and other goals

Invest in yourself by automating your monthly 401(k), IRA, or Roth IRA retirement savings contributions. Save for different purposes through automatic savings account contributions through payroll or other bank apps into an account set up for a specific financial goal.

Tip #5 – Discuss significant financial decisions with others

Before making financial decisions or purchasing big-ticket items, discuss the pros and cons of your decision with others before spending. Discussion can help determine if the financial decision aligns with your budget and goals.

tip #6 – regularly monitor and adjust your financial plan

You should have a written financial plan that aligns with your goals and timeline. Self-monitor your progress toward your goals and adjust your financial plan as necessary as your life changes. 

tip #7 – educate yourself

Financial literacy is the confluence of the economic, credit, and debt management knowledge necessary to make financially responsible decisions that are integral to our everyday lives. The more you know about personal finance, the more likely you are to make comprehensive financial decisions.

Tip #8 – Work with a financial professional

Working with a financial professional can help you determine strategies appropriate for your goals, risk, and timeline. They can also help you develop a budget, create a financial plan, save for your child’s education, and keep you on track toward your goals.

tip #9 – Don’t let your emotions impact your financial decisions

Weighing out the pros and cons of financial decisions before making a final decision is essential to financial wellness. When it comes to investing, emotions can be tricky since investors don’t always make rational decisions. Financial decisions require evidence and reasoning to make the most thoughtful choice so that you don’t regret your decisions later.

tip #10 – Save money in small ways

Look for discounts, promos, and coupons on items you regularly buy. Also, consider negotiating a reduced price for memberships and subscriptions such as internet, gym, and streaming channel services.

Talk to us today

Financial wellness is essential for many reasons since it can impact your mental and physical health and overall quality of life. By improving your financial wellness, you can build wealth for a more financially secure future. To get started, make sure to talk to us today!

© 2023 Trajan® Wealth LLC. Nothing in this blog is intended as investment advice, nor is it an offer to buy or sell any security. Please consult your financial advisor for questions about your personal financial situation. All investments involve risk, including the potential for loss. Trajan Wealth clients and employees may have a position in any of the securities mentioned. Portfolio holdings and other data are subject to change at any time and without notice. Additionally, the above links provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Trajan Wealth, L.L.C., of any of the products, services or opinions of the corporation or organization or individual. Trajan Wealth, L.L.C., bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links.

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