Do you feel financially healthy? Wondering what that even means? We believe that being financially healthy is an important part of your all around wellbeing, not just for your personal finances. In the next few weeks, we’ll take you through how you can get to a stress-free place when you think about money. We’ll tackle things head on, in bit sized chunks of course.
Let’s start with your expenses. This means having a good understanding of your spending habits and spending within your means.
Know your expenses. How much do you spend every month on various categories, e.g. food, transportation, entertainment? The simplest and fastest way to keep track of your spending is to use an aggregating app like Mint.com or you can use the budget tracker we created for you! You can find it here. Some credit cards also give you the option to see your spending mapped out into different categories on their website which may be helpful.
Pay down your credit card debt every month. Credit card debt can be crippling, charging an average rate of 15%-21%. Try to pay more than the minimum amount every month, and if you have credit card debt, look for lower interest options.
At the end of the month, assess. How much money do you have left after all your expenses? Were you able to put anything away for your retirement, in your savings, or in an investment account? Were you able to enjoy your current lifestyle?
These 3 steps are a few ways to get started in taking control of your money. Next up, managing your debt.
Check back to learn more about what you can do to get the most out of your money and live a financially healthy life. Sign up for our newsletter for more tips sent directly to your inbox.