5 things to improve your financial wellbeing

‘Almost 77% of the Americans feel anxious about their financial situation’, according to a survey by The Capital One and The Decision Lab. Nonetheless, it falls below this percent in the rest of the world. 

I’m pretty sure you’ve landed here – either worrying about your finances or focused and ready to learn how to manage it better. That’s what financial wellness is all about. Focusing on financial wellness can alleviate stress and help you feel more in control of your money. 

Financial well-being isn’t an overnight success, you’ll have to take baby steps little by little to excel with your money. Here I’ve curated 5 things you must start practicing no matter whichever stage of life you are at. 

1. Setting precise financial goals

A financial goal has three parts – Purpose, Amount & Duration. Set goals for a specific purpose, determine the amount you’ll need, and also the duration of holding. 

For example: I want to buy a car in 3 years costing $30000 today.

Also, keep in mind that your money is going to be hit by inflation. So it is important to save enough to meet inflation as well.  

2. Bid goodbye to debt

Debt is a real downfall that will eat up most of your income. Personal loans, EMIs, Car loans, Student loans, and Credit card dues are few debts people get on to so early in life. 

Prioritize to pay off the high-interest debts and also reduce their repayment term. Also, keep an eye on your credit cards and their due dates. 

3. Prepare a concrete budget

A budget is a blueprint of what you are going to do with your money. You could try using predefined templates available online or draft one by yourself. 

Simply, categorize into spending on essentials, non-essentials, repayments, and how much you’ll save or invest. 

4. Put your money on autopilot

Give your bank standing instructions to pay money towards recurring expenses (mobile\electricity bills), investments (SIPs), insurance premiums, etc. 

We always advise people to autopilot on saving for specific life goals like – saving for a car, vacation, marriage, etc. 

5. Track your spending pattern

In a notebook, quickly write down all those payments you’ve made this week. Now, we recommend that you do it, once in 4 days or weekly once depending upon the level of spending. It’s better to write down in a jiffy before you damn forget where that money went. 

You could also do this on your devices – for example in the Mobills App, which I find super handy and easy to record. 

If you put these baby steps into action, I’m certain that you’ll start to see results ASAP. 

What more are you staring for? Go, kick yourself and start breaking grounds.