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The path to financial wellbeing can be rocky. But with some initial foresight and the will to change some habits, you can get there. Here are some tips to get you started.
Pay for Coverage to Avoid Hardship
Now might not be the best time to talk about other monthly expenses. With the cost of living rising swiftly, that’s the last thing you might need. However, some monthly costs are more than worth it. For example, you can avoid getting into financial hardship by paying for necessary coverage such as health insurance, funeral plans, and even pet coverage. Some of the unfortunate events that life can throw at you could end up costing thousands you don’t have.
Check Your Bank Balance Often
One of the worst things you can do is ignore your bank account. If you are to get your finances on track, you need to have a solid relationship with your banking system. Fortunately, it’s easier than ever. All banks have an app you can use. And these let you do pretty much everything a bank teller can do instantly. Checking your balance is very important. By doing this, you know where your money stands. Meaning you know when to avoid making an unnecessary purchase.
Plan Expenses for Financial Wellbeing
Planning your expenses is important no matter where you live. Yet, shockingly, over 70% of Americans surveyed stated they don’t budget for expenses. Not knowing where your income and expenditure stand is like asking to get into financial trouble, even if you are wealthy. You can make a basic budget spreadsheet by listing your expenses against your income. It’s also worth assigning the date of transactions, so you know to leave money in your bank for a bill.
Pay Priority Debts by Direct Debit
If you are trying to get out of debt by paying them off, well done. This is the first step to helping yourself. Paying by direct debit is a great way to do this because it means the money goes out and is paid. Meaning less worry about something. However, it’s also worth doing this for the things you need the most such as water, gas, and electricity. That way, they are always paid, and you don’t have to fear the worst. Doing this for rent is an excellent way to keep your home.
Use Separate Bank Accounts
With so many expenses and transactions these days, it can become confusing. And confusion leads to insufficient funds sometimes. Therefore, it’s a good idea to use a separate bank account for disposable income versus funds earmarked for bills. For example, work out how much you have left after your bill payments. Then transfer that money to another account, and use only that associated debit card for purchases. That way, your bill money is always available.
There is no easy solution to financial wellbeing. It takes time to learn to manage money and change your relationship. But you can avoid hardship with monthly cover, plan your monthly expenses against income, and try using separate bank accounts for bills and disposable funds.