There’s never a bad time to review your financial wellbeing and check that everything is operating as it should. It’s a bit like going for a check-up with your doctor. It can be difficult to know what to check and where to start but there are some ways to improve your financial wellbeing.
Make A Personal Budget Plan
Much of the time, we don’t think about our financial wellbeing. Money is coming in, and money is going out, we have some leftover – usually not enough, or as much as we would like. The tendency is to think we need a new job or a promotion to earn more income, but that’s not the case. If you analyze your money over a month, there will be areas where you can make savings. Those small savings translate into more income or an emergency fund. Have a look at the free budgeting tools on Pigly to help you navigate your finances better.
Start Saving
It’s never too late to start saving, although the earlier you start, the more you will earn over time. If you start saving every month when you’re twenty, you will have a healthy retirement fund – start at fifty, and it will be much less, or else you will pay more every month for the same result. It’s best to pay off as much debt as you can before saving, although having an emergency fund is different (see below). Using the Pigly free debt calculator you can see when your debt can be cleared.
Manage Your Lifestyle Inflation
There is a concept known as ‘lifestyle inflation’ which refers to spending more in correspondence to an increase in income from a promotion or a new job. This is natural, but it can be damaging to your financial wellbeing in the long term. By keeping a level head about what you buy and spending in moderation, you will be able to balance your money levels and make sure there is enough going to your savings account every month or your emergency fund.
Spend Wisely
Regardless of your age or income level, it’s important to know the difference between things you need and things you want and to spend appropriately. Things you need are related to survival; you need food, medicine, transport, clothing, etc. Things you want are not related to survival but might make your life easier or happier. Before purchasing any item, take some time to consider whether the item is something you need for example, work clothing like la police gear. If you decide against buying something you might think about saving the money instead.
Grow Your Emergency Fund
As a rule of thumb, we are often told that we need 3-4 months of extra income in an emergency fund to cover unexpected expenses such as car repairs, illness, or interruption to our regular income. Don’t worry if you don’t have this money available right away; the important thing is to be aware of it and put a little aside each month. Your emergency fund is an ongoing project, don’t feel dejected if you have to use it for something – that’s the reason for it.
*Collaborative pos