You’ve come to the right place if you’re fed up with your financial situation! Of course, I can’t make you wealthy in one night, but I can give you 5 basic tips for creating your own financial wellness.
1. Adjust your mindset
Before you may see improvement in your finance, you should be grateful for everything you’ve learned along the way. It means you should reflect on and appreciate everything for which you are thankful, including money. Both excellent milestones, such as relocating to a nicer house, and unpleasant experiences, such as losing your job, taught you important life lessons. When you are deliberate about showing gratitude, especially when it comes to money, you will have more positive thoughts.
Creating a financial vision board is another wonderful way to change your money perspective.
- Make a list of your financial goals.
- Print or cut out images from publications that connect to those goals.
- Write the date you wish to fulfill those goals next to the images and pin them to a cork board or other suitable board.
A financial vision board will allow you to see the goals in a different light than simply writing down your goals on a piece of paper. To keep your dream alive, put your vision board in front of your eyes every day. Allow your imagination to run wild!
2. Be Minimalism
Maybe you have heard about the minimalist lifestyle. Minimalism encourages you to have a purposeful and satisfying life, which results in fewer stuff, more money, and less pressure. So it will absolutely contribute to your financial wellness.
There are many ways to practice minimalism:
- define why you want to own an items before do purchasing, distinguish needs vs. wants.
- purchase items that are high-quality with a long lifespan
- when a stuff breaks or wears out, first try to repair or repurpose it
- sell items that are in good condition but you no longer want or need them
- invest in great experiences rather than luxury assets
3. Pay Debt Off
Getting out of debt is one of the best things you can do for your financial wellness. You may use the spare income to create an emergency fund, invest or do anything you want with it. To see your debts disappear one by one, follow the steps detailed below:
- Make a list of your debts, and then arrange them in descending order, starting with the debt with the lowest balance and neglecting interest rates.
- Making the bare minimum payments on all of your debts, excluding the one with the lowest balance.
- Pay the minimum, plus whatever extra money you can afford on the lower debt in order to get it paid off as soon as possible.
- After each debt has been paid off, repeat the procedure.
4. Control your numbers
Do some simple calculations to understand your financial situation. It is important to identify which areas you need to improve and how to make progress effectively.
Start with the numbers of what you own (cash, savings, retirement, cars, estate…) and what you owe (loans, credit card balances…). Subtract the total of your liabilities from the total of your assets. Is this a number that makes you feel satisfied or safe?
Next, list all sources of income and expenses of yourself/ your family. The income might come from salary/wages, side – hustles, bonuses, alimony, rental income… The expense includes any items that you need to buy, give, or save for. Check each one-off, quarterly, or yearly item.
Be serious when diving into the data. You can’t expect to attain any of your financial objectives unless you actually sit down and look throughout each number.
5. Make money from your talents
Beside your main jobs, think about monetizing your talents. It is one of the simplest methods to make more income (and that’s also fun!).
You can teach people to sing, dance, do crafts, swim, bake, or braid hair. That’s perfect! So you can make more money from your gifts. Why not charge for something you currently do for free? Remember that you are worthy to earn money for doing things you are good at.
You can provide your services to relatives and friends as a starting point. Then shout out to the world!
