8 Tips For Financial Well Being

Educate Yourself

Reading financial books and blogs or listening to podcasts and audiobooks is a great way to get started. Once you identify an area of interest start to put your focus towards get a strong understanding in that area before moving onto the next topic. Slowly you will develop a financial education that will prove to be very valuable throughout your life.

Avoid Impulsive Purchases

Everyone occasionally makes impulsive purchases, but they can swiftly empty your bank account. Wait a week before making a purchase or at the very least give it some thought and sleep on it. If you decide to purchase it at that point, you will be certain that your money will be well spent. Very often you'll choose to keep your funds that you worked hard for.

If you have patience, worthwhile opportunities will be available the next day. Waiting and learning is a cheap lesson compared to acting rashly and learning a costly lesson you will regret.

Make a Plan

Budgeting and making a personal spending plan to keep track of your income and expenses are the best ways to start this. Small adjustments to your regular expenses, like brewing coffee at home and packing lunch are entirely within your control and can affect your financial future just as much as a pay boost can.

Saving money is essential for the future. You don’t want to rely on credit forever. If you have debt, you may also be unable to enter retirement since you won't have enough money to cover all of your payments.

Vehicles

Buy the vehicle you need, not the expensive one that you want. It’s amazing how many people have extremely high vehicle payments, seemingly to feed their ego or portray they are doing very well. Meanwhile they have massive payment with interest due every month. Now there is nothing wrong with a nice vehicle but carefully consider how they impact your future finance. These debts will take away from your buying power, so if you want a mortgage, business loan or a line of credit these debts will set you back more than you might think. Just because you can afford the payment doesn’t mean you should do it.

Put Your Money to Work.

Whether it’s stocks, real estate, bonds or starting a business make sure that you have done your homework. These are all areas you don’t want to rush into without a very good understanding of what you are doing. Historically real estate has been a good investment, everyone needs somewhere to live. Whether you buy it for an income property or to live in this can be a great decision and also be part of your retirement plan if you have your mortgage paid off by then.

Taxes

Don’t put off your taxes. This will just cause you more work and be a headache down the road. If you’re self employed this is extra important. For many people talking to an accountant can help with minimizing your tax bill by claiming expenses and figure out the best way to structure things. If you end up owing money pay this quickly, otherwise you will be charged interest and have the tax man banging on your door. No one wants that.

Know Your Value

Even though it seems easy, many people find this first guideline to be difficult. Make sure you are aware of the market value of your position by assessing your abilities, output, job responsibilities, contribution to the business, and the going rate for your profession both inside and outside the organization.

You'll never get ahead if you spend more than you make, regardless of how much or how much you are paid. Often, it's simpler to spend less money than it is to make more, so making a few small sacrifices here and there can help you save money. And it's not always necessary to make significant sacrifices.

Debt

Firstly, you need to get rid of any high interest debt. It might seem harmless at a glance, and you might tell yourself that you can afford it, but it’s dragging you down like an anchor. Prioritize eliminating this type of debt as soon as possible.

Using your credit card isn’t a bad thing, it can be a great way to build your credit score and earn some points or cashback rewards. You just have to be very strict about paying this down before you get dinged with interest. Managing debt is a key factor in financial well being.

Final Thoughts

Much of this might sound like common sense, but if you were to dig into people's financial situations, I think you might be a bit shocked. But other people's situations don't matter, look in the mirror and make sure you are on track.

Lastly, don't feed your ego, feed your family and your bank account.