Most of us set financial goals at the start of the year with the best intent. The great news is that there are strategies we can start applying today that will make us successful. To achieve our financial goals, we will need to learn some new money habits and continue the good ones we already have.
Recently, I started thinking of ways to achieve all-round health in my finances. These two concepts spoke to me: Financial wellness which is the process of learning how to successfully manage financial expenses and Financial Well-being which is having financial security and financial freedom of choice, in the present and the future.
In this blog post, we will explore ten techniques you can apply to achieve financial freedom and health.
#1: Know your financial status
Having clarity on your overall financial status will allow you to identify actions that you need to take. Write down your income, expenses, debts, financial commitments, and savings. Transparency in your finances will bring more calmness than when you hide from your status.
#2: Create a financial plan
Setting concrete financial goals and planning action may sound foreign to you. However, as with anything we want to be successful in, we need to set goals that we can work towards and track our progress. Explore Six steps to build your Financial Plan from my previous post.
#3: Make extra money
Having additional sources of income helps us become financially independent. I grew up around women who always had a side hustle and learned from them. Exploring side hustles provides you with opportunities to make some extra money and simultaneously chase your passions. Start small and grow your additional income consistently.
#4: Understand your taxes
It's currently tax season in this part of the world. Our relationship with taxes is mostly one of confusion and ignoring its existence. Making sure you are paying the right taxes and legally saving taxes will improve the way you view taxes. Taxes are a constant part of our lives and one we can master if we put some time into learning about it.
#5: Save your money
Reframing the way you think about savings will help it become a normal part of your life. What you do by saving is, putting money aside regularly to achieve your bigger financial goals. Learn some practical tips from my previous blog post - How to grow your Savings.
#6: Invest in long-term options
Once you start saving consistently, it's time to explore ways to grow your money. Investing in a house, stock market or other business ventures are a few ways to start making your money work for you. Available resources can help you make the right investment choice for you. Start investing as soon as you can. Sometimes I wish I started investing earlier. I began investing in 2017 and have been learning valuable lessons ever since.
#7: Get financial advice
We typically find it easy to go to a doctor when we have a health issue. Think about it this way, seeking financial advice from trusted sources is a way to make sure you are financially healthy. Ask questions and act on the great advice you get.
#8: Talk about money
Especially if your upbringing was like mine, talking about money was not normal. One of the biggest lessons I've learned is the power of talking about money with your partner, family and co-workers as openly as possible.
#9: Learn about finances
Being financially literate is an essential foundation for success. Read great books, listen to financial podcasts, attend trainings and use free resources. Gather all the knowledge you can on the financial areas you want to get better at.
#10: Celebrate your financial successes
While you are working towards achieving your financial goals, remember to celebrate your wins. Small, medium and big accomplishments deserve to be honored. The positive vibes you feel will motivate you for the future.
Call to Action
What are you committed to doing differently to achieve financial wellness this year?