5 Tips to Improving your Financial Health
Mindset
1. Be honest and real with yourself what you have been doing hasn’t been working. If it has then skip to the next Tip. If this statement applies to you keep reading. What are your thoughts surrounding money? Do you believe there is no reason to save because tomorrow isn’t promised? Do you feel that if you have money in your bank account it must be spent because it’s what is normal to you? Take this quick test to determine if you have the wrong mindset regarding money. If you agree with any of the three statements stop here and I suggest you read “Debt Free Living” by Larry Burkett to build a better mindset before moving on to the next tip.
a.) I believe having all my bills paid and money left over is impossible.
b.) My parents never budgeted, or saved and we seemed to do okay, so I don’t need to be concerned with having a financial plan.
c.) I don’t plan for anything, and I don’t really care about having a surplus as long as my family and I are ok that means I’m doing well financially. Next generation that’s not a concern for me!
Inventory
2. Take inventory of where you are by gathering all of your debts versus assets. If you need help figuring out what is considered debt, and what is considered assets I suggest going to google and looking up the definitions of both to help you determine these things. Then began to work on a budget plan you can do this by creating your own budget tool or using an app. Once you know what you have coming in and going out the real work begins. Ciphering wants versus needs to locate any surplus in your budget to begin a plan of action.
Budgeting Plan
3. Creating a Plan and sticking to it! By now you have a good handle on what’s coming in each month and what’s going out, and what you have left over. You may even have freed up some money by determining what you really need versus what you want. I am not saying get rid of all of your unnecessary pleasures, but I find most people have more than 5 and some of those can be eliminated. After you’ve done all the uncovering, and accountability it’s time to consider the need for certain tools, and or products to help keep you consistent, and to help you begin to create goals that are attainable.
Insurance
4. Now I would say this is a great place to talk with an Insurance Agent, or Counselor to help you determine if you have the first basis covered which is important in a solid financial plan. We’ve all heard it but never want to talk about it “Insurance” which is designed to protect you or a loved one from an unplanned loss that could put you in financial ruin. This is what Insurance is all about the inevitable, and there are several different types of categories from Auto, Disability, Health, Long-term Care, Life Insurance, and many others. The main ones that effect most people are Disability, Health, Long-term Care, and Life Insurance.
Credit/Debt
5. After you have been educated, and obtained the proper Insurance to make sure you or your loved ones are protected from financial ruin. The fun begins you are starting to feel better about your financial health, and you are no longer uncomfortable when someone brings up the top finances! At this point you should start looking at your debt and finding a way to start to tackle some of it. I would suggest getting a copy of your credit report so you see the whole picture. There are several great credit building agencies that can help you, and I have an awesome consultant I would be happy to refer you to! Your goal is this last tip, but not the final steps to your road to a better financial health status, is to have all of your debts addressed to begin to invest, and use the amazing effect of compound interest. Being able to get your money to work for you!! We all dream of getting, here but it doesn’t have to be a dream anymore it can become a reality!!!
If you’ve finished this page and you feel overwhelmed no worries I’m just an email and or a phone call away! If you’ve mastered all 5 tips and you are ready for the next level contact me! Who says you are in this by yourself?