Keeping your wallet healthy is no different than taking care of your own body; the exact same rules apply. It too requires sufficient rest (especially after exhausting shopping sprees), adequate breathing room, and some love every now and then. However, if you’re tired of being a mere financial commoner and you’re, instead, looking to become a financial athlete (so to speak), you really need to step up your game! If that indeed be the case, then take a look at these timeless ways to boost your financial health and become debt-free!
Look after your financial health.
Burn
Those Excess Calories
Having high-interest credit card debt is extremely
detrimental for your financial health. In a way, they are a lot like excess
calories that you need to burn in real life to stay healthy; not something you
can do overnight.
In essence, it can take months, even years, to get rid of them. According to a recent report made by the Australian Securities and Investments Commission (ASIC), approximately 20% of consumers were now completely overwhelmed by their credit card debt, totaling $45 billion in outstanding balances. The solution: start ASAP and target the highest interest rates first. If need be, take a debt consolidation loan to pull yourself out of that quicksand and get your feet on some solid ground for a change.
Build
up an Immunity
When it comes to your financial health, you
need to start building your ‘immunity’ early on. This means opening an
appropriate savings account and depositing regular
and frequent payments. Basically, you want to build yourself a sizeable buffer
zone that will shield you from any financial setbacks; you also want to save up
enough money for your retirement fund.
What’s
more, consider using automated paycheck deductions as, according to ASIC,
the lack of willpower accounts for some 27% of all resolution breakdowns. Remember,
even though it’s sunny today, you never know what the future may bring — a
hailstorm of credit card debt, a stream of mortgage payments, and a downpour of outstanding medical bills.
Conduct
Routine Check-ups
Before you enter the financial arena, you need to know where you stand and what you’re up against. That way you won’t ever start a fight that you cannot win. To do this, you must first figure out what your overall credit score is. Look for some sophisticated online tools and conduct a free credit check to determine your creditworthiness.
You can even compare yourself with other eligible credit owners in relation to their position on the credit score ladder. That way you can successfully diagnose any potential financial maladies and get to treat them before they fester into something more sinister. Just look at it more like a trip to the doctor’s office. You want to do routine check-ups every now and then to make sure that your health is always in mint condition.
Cut
Back on Those Sweets
Staying financially healthy requires you to
make some sacrifices. For one, you need to cut down on your non-essentials; these
are usually the sweetest. Can you really afford to buy all those new shoes? Do
you actually need them? Is there a chance you can skip a few concerts and
festivals this year? What about that annual gym membership that’s just
gathering dust since your last New Year’s resolution?
Find a way to discipline yourself and create a strict
budget. You don’t have to implement any drastic lifestyle changes; just make
sure you spend less than you earn. Otherwise, these expenses can inflict some serious
injuries to your overall credit score; not to mention the permanent damage they
can cause to your whole debt reduction plan.
Exercise
Some More
Just like you need to go to the gym to stay in
shape, to promote financial well-being you need to do some more ‘exercise.’ In
other words, you need to find a second source of income.
This can be anything from a few extra bucks earned from some small side hustle
to some sweet passive
blog income.
Whatever the case may be, invest that money
into something smart; for instance, your savings account. That way you won’t
have to live in fear of not having enough saved up for when you retire.
Be smart and keep your finances in shape; your
future self will thank you for it. Open a savings account, do frequent
check-ups, and don’t fall further into debt. You can make it, so as long as you
stay focused on your goals.
