Your financial well being plays a big part in the quality of your life and your general life experiences. Your financial wellbeing refers to your financial goals, the way you manage your money, and how you work towards wealth management. Financial wellbeing also refers to the level of your financial health, confidence, and security. However, a good dose of financial wellbeing is often a function of deliberate planning and not a sudden happenstance. This piece provides actionable insights that can help you improve your financial wellbeing in 2018.
1. Improve your financial knowledge
The first step towards improving your financial wellbeing this year is to improve the level of your financial literacy. You should strive to grasp simple financial concepts such as how taxes work and how your credit score is calculated. You should also be able to interpret loan terms so that you can know if you are getting a fair deal on your mortgage, credit cards, or other loans. Municipal councils, state governments, community colleges, and some employers often provide ongoing education for people interest in financial literacy – take advantages of such programs around you.
2. Take advantage of savings tools
An ability to save money is a key indicator of financial wellbeing because it shows that you are disciplined in delaying gratification and not spending all of your money today. However, saving money is not an easy task because human wants are unlimited but the resources available to satisfy those wants are limited. Hence, most people will find it hard to save any money because their income is not even enough to cover their expenses. If you have a have a smartphone, you can download apps for saving money. You can also find an accountability partner with whom you’ll commit to saving a definite amount each week/month.
3. Reduce temptations to shop
Irrespective of the depth of your financial discipline, you’ll still have to deal with barrage of advertisement telling you to buy this and that. The temptation to spend money on impulse could be stronger if you spend some time on the internet as you experience pop-up ads, banner ads, and a barrage of emails from mailing lists that might have unwittingly joined. You may want to consider ad-blockers to reduce intrusive ads on webpages. You should also take the time to unsubscribe from mailing lists that tend to send you too much ads.
4. Be proactive about dealing with debt
Debt will exert stress on your financial wellbeing by keeping you worried and ‘wasting’ money on interest payments. If you have are already enmeshed in a debt situation, you’ll need to be proactive to deal with your debt before it messes up your credit or worse still, makes you file bankruptcy. A debt settlement arrangement can help you clear out your debt outright for less than the full face value of the debt. You may also want to consider a debt consolidation service to make smaller payments spread over a longer term.
5. Make sure you have decent insurance coverage
Your financial wellbeing will be incomplete without the respite that an insurance policy provides in the event of unexpected circumstances. You shouldn’t joke with health insurance for yourself and other members of your family. You may also want to get liability insurance to protect your assets from malicious lawsuits. More so, you should work towards getting a life insurance policy – yes, it will force you to face the fact of your mortality. A life insurance policy will provide a semblance of financial security to your family in the event of your demise.
6. Protect yourself against identity theft
Identity theft is a real problem in today’s digital age and you need to protect your identity from cyber criminals. Apart from the fact that identity theft can be used to steal your money, criminals can use a stolen identity to perpetrate crime. Victims of identity theft might find themselves with bills worth thousands of dollars in unauthorized transactions and you could spend a considerable amount of time and energy disputing such bills.
7. Maximize your workplace benefits
If you work in a conventional job that offers workplace benefits, you can leverage the benefits to improve the quality of your financial wellbeing. For instance, if your employer offers to match your retirement contributions, you should strive to contribute the highest possible payments so that you can get as much as you can in matching payments. You also take advantage of other perks such as health insurance and gym membership instead of paying out of pocket for such things.