8 HABITS TO IMPROVE YOUR FINANCIAL WELL-BEING

Financial well-being entails having a steady flow of income which not only allows you to afford the lifestyle you desire, but also lets you save for big plans, rainy days and retirement. 

Far too many people are struggling to achieve financial freedom and well-being in terms of spending, savings and investments. Too many people are struggling to stay afloat in the face of rising inflation, increasing debts, financial emergencies, taxes and hidden costs, and extravagant spending habits.   

Life can throw you a totally unexpected curveball at any point in time. Something totally routine or something as unexpected as a global pandemic can wreak havoc with your financial planning and can reveal scary, gaping holes in your security net.

We have compiled a list of 7 habits that can help you manage your overall financial health and well-being better, and give you a priceless sense of financial freedom and security. 

1. Write down your financial goals 

Sit down with yourself and think over what financial freedom means to you. Pen down your goals with a proper timeline. Try to make S.M.A.R.T (Specific, Measurable, Achievable, Relevant, Time-Bound) goals.  The smarter your money goals are, the more likely you are to achieve them. A general desire to improve your financial situation is unlikely to motivate you to take sufficient action consistently. Write down how much you should have in your bank account, what you need to do to achieve that, how much do you plan to earn, spend and save.

Write down your financial goals on a piece of paper clearly and put it where you can see it often. 

2. Make Your Budget

Making a budget is simple and straightforward enough for most people to understand, but very few can actually stick through and follow it. It requires a certain degree of self-introspection and self-control. It requires that you thoroughly analyze your spending habits, and make necessary changes where required. It might seem restrictive to some, but it is actually an empowering habit, because it lets you control your money, rather than letting your money control you.  

Budgeting is key to achieving your financial goals.Having a well-planned personal monthly budget, and trying your best to stick to it, is one of the most productive and beneficial habits for achieving good financial health.

3. Invest Your Money

Keep your money safe and allow it to grow by investing wisely. There are some online banking and revolutionary fintech applications available that offer convenient and lucrative investment options. Availing these options after careful research, and following through with the required discipline, can help you progress by leaps and bounds in your journey to financial well-being. 

4. Shop Smartly

Never hesitate to look for a good bargain for goods and services, and negotiate where possible. Small businesses are very open to negotiations. Staying loyal customers to certain outlets will also help you get a plethora of advantages that come with being regular customers. Buying in bulk is also a way to get the best prices.  You can also save money by comparing prices on different online and on-ground stores, and waiting for sales if possible.

5. Become financially literate

Being financially literate simply means knowing the ins and outs of managing your money. There is a wealth of resources available online to self-educate yourself in all aspects of spending, saving, investing and budgeting. Financial literacy helps you become a wiser and more knowledgeable spender and investor. Knowledge is the best defense against your own unwise spending and financial habits, as well as against scammers who are waiting to pounce on unsuspecting investors. 

Evolving financial tools, especially in the realm of blockchain, cryptocurrency and fintech applications, require you to constantly learn to stay on top of the financial game and cherish all the benefits and freedom that the next-generation of financial tools and networks have to offer. Fintech applications do money differently. They allow you to save on conventional bank fees associated with payments and transfers. 

 

It is also crucial to regularly keep abreast of changes in the tax laws and developments in the stock market to make wise decisions regarding your money matters. 

6. Live Within Your Means

Splurging mindlessly can mess up your financial goals in a big way. Learning to differentiate between what you want and what you need is the first step to wiser spending. Prioritizing your needs over your wants, and aligning your spending habits with your financial goals will help you get on to the road of financial soundness and stability fast.  

Lifestyle inflation explains how most people sabotage their finances and kill their chances of becoming financially secure. Competing in the mindless rat race of better car and larger houses, while amassing debt and living from paycheck to paycheck is the perfect recipe for financial disaster.  

7. Maintain Your Stuff

A stitch in time saves nine. Whether it’s a car or a dress, maintaining it is far, far cheaper than replacing it. Taking good care of your belongings will go a long way in helping you save your hard-earned money. Diligence in taking care of your stuff will help it to last longer and perform better.

8. Take Care of Your Health

Just as you should maintain your belongings, you should maintain your own health and vitality. Get regular check-ups done by competent medical professionals. The majority of health problems can be prevented or alleviated by adopting healthy eating and lifestyle habits. If you don’t make time for good health, sickness is definitely going to steal from your time and money! Poor health might result in impaired workplace performance, salary deductions, missed growth opportunities, or even early retirements. 

These 8 habits might not solve your financial woes immediately, but when practiced consistently, they will firmly ground you on the road to a sustainable financial future.

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