People who are serious about improving their physical health know that it requires effort and a series of small steps taken over time. It’s much the same with improving your financial health. Here are some steps that can take you closer to achieving financial wellness.
Spend Less Than You Earn
You’ll never get ahead financially if you spend every dollar you earn. A budget will help you track where your money is going and where you might be able to cut back on spending. Dining out multiple times a week or paying for apps you rarely use are examples of discretionary spending that could be cut. By reducing day-to-day spending, you’ll free up money to put toward your financial goals.
Look for Savings
Think outside the box and look for some not-so-obvious places where you can pay less for products and services. Switching to a low-rate credit card or a different cell phone or cable provider could result in big savings. It’s the same with utilities — many states, including Michigan, give consumers the ability to choose an energy supplier other than their local utility. Just be sure to use the money you save wisely.
If a large part of your income is going to pay off credit cards and loans, you’ll make little progress financially. Make it a financial priority to pay down high-interest consumer debt as quickly as possible.
Make Sure You’re Covered
Having enough life and disability insurance coverage in place is a key element in achieving financial wellness. A disability income insurance policy can help you pay household bills and meet other financial obligations if you become disabled and can’t work. Life insurance can also help protect your loved ones from financial hardship.