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Have your finances stressing you out lately? Are you struggling to keep the money making and saving pace?
You are doing everything right, yet, you aren’t noticing any progress. Well, maybe it is your financial health that needs an in-depth look and a bit of fixation.
Ever think about it?
Yes! It can and has played a significant role in determining how well a person works on his:
Curious to learn more and find the true state of your money? Simply scroll further and thank us later!
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Have you ever been told to,
Earn more money…
Get a high-paying job…
Achieve your monetary goal by a certain age…?
And, perhaps, this is all that revolves around your idea of financial health, right? So, let’s get it real today!
| “Financial health is a multidimensional term that covers different aspects of your finances, be they personal or professional.” |
These different aspects revolve around but are not restricted to:
Moreover, your financial health is also determined based on how money lenders see you as a borrower.
See: How To Build A Lender-Friendly Credit Profile?
Therefore, the next time someone tells you that simply getting a high-paying job and then spending that salary as you wish will be enough for stable finances, help them know better about it.
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We are often told one thing again and again, “oh, money is really not that big of a deal.”
But, guess what?
You are only capable of saying that as long as you are not hit by uninvited life events, like
Which altogether can affect your income and you are now unable to pay monthly bills or make any good money decisions for your future.
And the list goes on.
So, what does a realistic perspective say? It simply states that:
And so on. Therefore, a healthy financial life can help you in endless ways. Some of these are:
Moreover, working on your finances and everything in between helps you fix your relationship with money and learn more about the world around you.
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We get it; the very next question popping into your mind must be,
“Okay, I get it – what is financial health and why it matters, but what exactly is needed to determine it after all?”
Worry not, we have got you covered! All you need to do is ask yourself these questions below and you are already good to go!
Questions like these and a few more might not result in a straightforward answer but will definitely help you connect the dots.
Moreover, it will give you a holistic idea of how serious you have been with your present self and future self.
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So, is there an easy way to know where you stand financially? Will it be beneficial to know your true state of money? Can it help improve your financial health? Let’s find answers by reading 4 pillars of finances:
So, the first one starts with calculating how much you need to spend on every category you section (including needs, wants, extras).
You need a good budgeting method to ensure you do not overspend or underspend.
The next on the list is: save. The pillar that focuses on setting your future finances. The basic goal is to save at least 10% of your total income as it’s necessary to plan your retirement and clearing debt.
Here enters the alternative lending or bank loans as not everyone has a good source of income to cover all their expenses. Yep, sometimes, things can be too hard to handle and you’re only left with the borrowing option.
Nothing wrong with it as long as you pay back everything on time!
The last pillar is the one that actually binds everything together. Yes! You can’t expect a good monetary result without a good financial plan. You need clear answers for the questions mentioned in the above section. Moreover, you need to know:
Mainly, do you wish to retire early? Your answers will help you plan accordingly!
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There are chances that asking the above-mentioned questions might not have resulted in pretty good answers. So, what should be the way out?
Should you start stressing out about your state of money? Or, should you start working on it right away because it is definitely not a daunting task?
Had we been at your place, we’d definitely have opted for the second option!
So, here are a few practical tips you can follow!
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Not one but many adults have complained about not knowing exactly where to start with their finances?
Or, some explain how they are often unable to keep up with everything.
We’d definitely say that this is simply because you don’t have your type of goal.
This means that you need to:
Once done, you will automatically start seeing yourself getting back on track. Setting your type of goal is essential as only you know your current financial situation.
Of course, you can get inspired from the experts, but you can’t copy their goals.
To be very honest, when it comes to your personal finances and everything in between, there’s no such thing as “tomorrow.”
This is simply because:
Therefore, whether it is your loan, debt, mortgage, credit card payment, or anything demanding immediate payment – just do it, at least as much as you can!
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It looks cool having a bunch of cards in your wallet and flaunting it in front of your buddies, right? But, have you ever thought about whether these cards are hurting your finances or not?
Or,
Are these cards helping you improve your financial portfolio or not?
Therefore, choose your secured credit card when you want to
Moreover, it will also help you use your credit card as mindfully as needed!
Anyone can fall into bad spending habits, ultimately downgrading their financial health.
However, this is also something that can be fixed, all you need are expert tips to follow and you are good to go!