Financial Freedom

This month in our conversations about health, one of the areas we have to make time for is finances.  There are tons of great resources, programs, apps and people who can help you with your finances, and honesty, shame on you if you’re not taking advantage of it.  So today I’ve got just a couple of thoughts on finances, especially as they relate to living a healthier life.

1-know where you stand: I know it can be tempting to stick your head in the proverbial sand when you don’t want to think about how bad they are or that they’re not as you want them to be.  But avoiding them completely is not the way to a healthy bank account.

2-talk about it.  Especially if you’re in a relationship or you have kids it’s important to talk it over with your partner or a family member so that not only are you not bearing the whole responsibility of finances on your own, the important people in your life know where your accounts are and what needs to be paid each month in case of emergency.

3-save.  I know it can be hard to do this when you’re worried about bills, but if you don’t put even a small percentage of your money aside each month now you will struggle when it comes to emergencies and retirement, rather than having the peace of mind that you’re taken care of.  As little as 5-10% a month can make a big difference.

4-pay your bills.  This sounds obvious, but so many people put it off or avoid it that they get into trouble.  Pay your bills not only a few days early but when it comes to loans and credit cards always try to pay a little more than what’s required so you pay less in fees and get rid of the balance sooner.

5-spend wisely.  This is one of the hardest parts for many people.  It’s not about skipping the fun and treats, it’s about allocating a portion of your finances each month to that stuff and either spending it or saving all of it or a portion of it for something bigger like a trip.  The big key with spending wisely is planning and knowing how much you have to spend each month for all aspects of your life: food, home, transportation, kids, health, fun and emergencies.

6-ask for help.  I don’t know it all about money and there’s no way I would qualify as a financial planner so I know that one of the best things I can do for my finances is ask for help from those who are qualified.

7-invest.  We’ve talked about saving for the future, and part of saving is wisely investing some of your savings so that you’re prepared for retirement and end-of-life expenses.  While most people aren’t big gamblers and don’t go for high risks, some of those high risks can pay big dividends, so it’s usually a good idea to have some high, mid and low-risk investments depending on your risk threshold and life situations.  Again, talking with a financial adviser about the different investment options there are today is always a good idea.

8-take action. Don’t wait until you’re in deep debt or collections to try to make more money or fix your financial situation, start investing and paying down your credit cards and other loans and expenses now.  Contact that financial planner, invest in a course on finances, and ask for the help you need to make your financial future a strong one.

What are you going to do for your finances this weekend?

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