| Wellness is about more than eating healthy and counting steps. It’s about having healthy habits in all areas of our lives — our health, emotions, even our finances. Financial wellness is the total picture of your financial health, including how your financial situation affects your stress levels and overall mental and physical health. Financial wellness isn’t a destination, but a constant journey of making adjustments and building resilience, which not only helps you achieve financial stability, but also enjoy a healthier life. If you feel stressed about your finances, you’re not alone. A recent report showed that 57 percent of people say they’re “very or somewhat stressed” about their financial situation because they struggle to pay bills, don’t have enough emergency savings, aren’t on track for long-term savings goals or are unprepared for risks like an unexpected death or disability. However, studies also show that the more financially responsible you are, the less stress you will feel — even in the midst of a global pandemic. Here are some simple things you can do to get started on the path to financial wellness, less stress and better health. Spend smart. Live within your means: * Write down every expense for a month to see where your money goes. You might be able to find extra money to save. * Decide where your money should go by making a budget and sticking to it. * If your household has two incomes, experiment with using one for expenses and the other for savings. * Before you buy something, ask yourself if you really need it or wait a few weeks to decide. Control debt. Know what you owe and make a plan to pay it off:Pay off credit cards with high interest rates first, then stop using them.Pay as much as you can on your smallest debt and pay at least the minimum on the larger ones. A modest accomplishment like paying off that first debt will feel great. Increase savings. Saving for retirement, education, emergencies or other expenses can give you peace of mind: * Save something from each paycheck. Give saving the same importance as paying bills. * Many experts suggest saving 10 to 25 percent of each paycheck. * If you’re just getting started and that won’t work for you right now, start with one percent and increase as you make progress. * Save enough in an emergency fund to cover at least three months’ worth of expenses — six to nine months’ worth is even better. If you ever use it, rebuild it as soon as you can. Feeling excited and ready to get to work on your financial wellness? Here are 54 more ways to save money. |
| [SOURCES : 101 Challenges: Become the Best You by Tad Mitchell, America Saves, Prudential and State Farm] |