Did you know that financial wellness isn’t always directly linked to how much you get paid? In fact, a recent report even found that people who earn over €100,000 had the same money worries as those earning below €10,000! This shows it’s our relationship with money, not the income itself, that makes all the difference.
Obtaining financial wellness is all about control and creating positive spending behaviour. Being able to treat yourself as and when you need and can afford it. Using credit smartly and to your advantage. Here are some steps you can take to take control of your finances and reduce money stress and anxiety.
• Spend wisely and within your means.
• Have an emergency fund.
• Have access to tools and education to make beneficial financial decisions.
• Understand how emotions affect money management.
• Learn how to budget: this will give you more control over your finances, allow you to spot where you’re overspending, and help you reach your financial goals.
• Have a financial plan: a financial plan outlines the steps needed to improve your financial wellness. It includes a budget, goals, saving amounts, and assessing ways to reduce outgoings or boost income.
• Set realistic financial goals: it might take time to pay off debt, learn new habits. Unrealistic goals make it more likely you will become disheartened. Instead, set specific goals that are also attainable.
• Spend less than you earn.
• Save for future spending.
• Only borrow what you can afford.
• Grow your money.
• Protect what you have.
• Say no to requests that don’t align to your values and financial priorities.
• Change your mind. If your circumstances change or you have a new idea, you can always adjust your goals.
• A simple rule of thumb many people use for budgeting is 50/20/30.
o 50 percent of your take-home pay goes toward fixed expenses (mortgage or rent, utilities or loan payments).
o 20 percent of your take-home pay goes toward savings for the future.
o No more than 30 percent goes toward discretionary spending (your wants). Reductions in this kind of spending can be used to bolster your savings.
Finally, financial wellness is a marathon, not a sprint. If you’re struggling with your finances, aim for small victories along the way—don’t expect to transform your relationship overnight. As we conclude, congratulate yourself for reading this article, and taking one step closer to achieving ultimate financial well-being.
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Times of change can be a challenge, no doubt! Whether it’s a relationship breakup, job loss, or being diagnosed with a serious health issue. Or you may WANT things to be different, but it feels a little scary or overwhelming. The butterfly reminds us change can be beautiful, even necessary, in order to realize our full potential and live our best life.