A queen does whatever it takes to ensure her finances are in the best state–and I mean that literally. Did you know that despite her fame and fortune, Queen Elizabeth II still took the train and monitored her budget? {May she rest in peace.} To stay feeling financially abundant, you have to take care of your financial wellness even when you’re literal royalty.
What is Financial Wellness?
Your financial wellness is how you feel about your finances. Another term you might use is financial security. Protecting your financial wellness is about giving yourself some breathing room when it comes to your money. Being financially well means you’re not worried if you lose an income source or make a bad investment. It can make a huge difference, especially in your mental health and stress levels.
While Queen Elizabeth didn’t need to worry about losing her job any time soon, you can still learn from her. Here are 15 financial wellness tips that you can follow today:
Build an emergency fund–one of the best financial wellness tips
You can’t have a list of essential financial wellness tips without discussing building an emergency fund. This is a savings fund that ensures you’re safe in the event you lose your primary source of income. You’re not supposed to touch this fund for anything that isn’t an emergency. This should amount to about six months of monthly expenses–but it doesn’t hurt to save more.
Don’t stop saving
Having a fully built emergency fund doesn’t mean you’re safe. In a few years, inflation will eat up a good chunk of your money–even with interest in a few years. Even if you have some money in the bank, you should still save a bit of income every month.
Sometimes, a bit isn’t enough. That’s why you should also consider an aggressive savings plan. Check out my article on how to use one here.
Set and stick to your budget
If you don’t already have one, you need to have a monthly budget. This helps you track where you allocate your funds every month. Ideally, you should know where every dollar you earn is going–whether it’s food, rent, or savings. Setting a budget is easy, though–you have to stick to it if you want to build financial wellness.
Sticking to a budget gets a lot harder when there’s family involved. Here are a few tips that moms on a budget need to know.
Eliminate debt
Debt is the biggest enemy of financial wellness. It’s hard to feel financially secure when a portion of your income is devoted to paying someone back. Eliminating any existing debt should be one of your priorities when building your financial wellness.
Avoid unnecessary loans
Sometimes, a loan is a good choice, like if you need a car or a new place closer to work. However, some loans are unnecessary, like credit card debt after a shopping spree. If not paid back ASAP, these non-essential loans will hurt your financial security in the long run.
Cut costs
Do you really need to spend $5 at the cafe every day? Identify where you’re spending money unnecessarily, and find a way to lessen the cost. Maybe there’s a cheaper alternative somewhere else–or maybe you don’t even need it!
Track your spending
Don’t know where you’re spending money unnecessarily? Track where your money goes! Maybe it’s not the $5 coffee that’s eating your budget, but gas or grocery prices (and I can’t blame you.) This is one of the financial wellness tips that can seem like a burden but will help you from spending more money than you need to in the long run.
Upskill and invest in yourself
Investing your money is important, but not every investment has to be in stocks or funds. Joining a workshop or conference can help you get valuable skills (or connections) to help you move up in your career. Unless you’re earning big bucks, staying at the same job for too long isn’t the best option financially.
Job hunt
Getting a better-paying job is one of the main ways to increase your income. By staying comfortable at a job for too long, even if you like your current job, you could be leaving money on the table. It doesn’t hurt to shop around and network.
Avoid lifestyle creep
Even if you get a better-paying job, it won’t mean anything if you spend more money, too. Teach yourself to be content with what you have. This way, you’ll have more money to spend and invest when you get a raise.
Diversify your investments
You probably already know the saying, “don’t put all of your eggs in one basket.” If you invest too much in one thing, and it flops, you’ve lost a lot of money. However, if you invest a little money across a diverse portfolio, you may earn more than you lose.
This is only true if you know how to invest. If you don’t, you should check out my reading list for books about investing.
Don’t commit too much, too soon
I think we can all learn something from the NFT bubble bursting earlier this year. For a while, they were the hottest investment around. People were paying thousands to own a picture of a digital monkey. Now, the only times I here NFTs mentioned these days are when people say they’ve lost money because of them. People made money with them, but they were a risky investment–which you shouldn’t make if you’re not financially secure.
Max out your retirement fund
What if I told you there was a way to get money without worrying about taxes? That’s what retirement funds are for! Some accounts, like the Roth IRA, are completely tax-free. By maxing out your retirement contributions every year, you’re setting yourself up for financial wellness.
Set your financial boundaries
Sometimes, our loved ones can stand in the way of our financial wellness. It doesn’t hurt to set some financial boundaries if you think this is happening to you. This help to protect both your money and your relationships.
There’s always more to learn
Think you already know all there is about financial wellness tips? You probably don’t–and that’s why you should sign up for the money squad! As a member, you’ll receive personal financial advice sent weekly via phone! Signing up is absolutely free and takes just a few seconds, so sign up today!
