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4 Ways to Take Control of Your Financial Wellness

When you hear the term “wellness,” you may understandably think of wellness of the physical, emotional, and/or spiritual variety. These forms of wellness are all important. Without wellness being present in those areas, life would be difficult.

However, there’s another type of wellness that is also crucial. It may not be on par in importance as the ones mentioned above but it can improve on your life. What we are talking about here is financial wellness.  

Money doesn’t solve every problem. However, it can solve some problems. If your financial life is not well, you will have difficulty paying for the things you need, raising a family, and saving enough money for retirement.

So what is financial wellness and how do you get there? Let’s define it and then look at some steps to get you moving in the right direction.

Understand Financial Wellness 101

Put simply, financial wellness is the ability to have a healthy financial life.

More specifically, this concept means being able to meet current and future financial obligations. This would include paying your bills on time and having enough money for your everyday household needs.

It also means feeling confident about your financial future. Once you reach a state of financial wellness, you will typically feel less stressed about money. This, in turn, can help improve your physical and emotional wellness.

What we are really getting at here is having a level of financial peace. When you handle money properly, it creates margin in your financial world. When emergencies come, you do not feel stressed out because you have the money to pay for them.

Cut Back on Expenses

A great way to get on the road to financial wellness is to pare down your expenses as much as possible. This will free up money you can use for other goals.

There is only one way to get started with this and that is by creating a budget. Start by tracking all your spending for a couple of weeks and then look for places where you can easily cut back. For instance, you may be surprised to know you’re paying for four streaming services and a gym membership, both of which you hardly use. You can then put your newfound money toward paying off any debt and/or building up your savings.

You are going to need a system to stay on track. There are many financial programs and apps available to help with this.  You may consider using the user-friendly apps like the Monorail app. It offers a number of features, including a dedicated wishlist fund that essentially acts as an allowance for grownups. 

By checking the app on a regular basis, you’ll be able to easily see how much money you have left to spend that month. You can also make things easier on yourself by connecting your bank account to the Monorail app and scheduling regular deposits to your wishlist fund.

Pare Down Your Debt

Owing money to credit card companies is stressful. High-interest rates can make paying off your Visa and MasterCard bills a discouraging and slow process. It may seem like you will never get to the end of it all. 

Fortunately, you’re not required to only pay the minimum amount each month. Instead, you can adopt Dave Ramsey’s debt snowball method to take quicker control of your credit card bills. Or, you can research and choose another program that works for you.

To get started, consider taking any excess money from cutting back on expenses and putting most of it toward paying off your debt. As you watch the balances get lower, you will feel more financially healthy and empowered than ever.

Related Content: How to Get Out of Debt and Win in Five Simple Steps

Build Up Your Emergency Savings

An emergency fund is one of the best ways to achieve financial wellness. As its name implies, this money will be used to cover those unexpected bills, like car repairs or a new washer or dryer.

Your first step should be to set aside $1,000 for the fund. To make this a reality, consider holding a garage sale or sell off some unused household items on neighborhood buy and sell groups. Then, when an emergency pops up, use this money to pay for it rather than pulling out your credit card. The more you eventually can build up this fund, the less you will worry about unexpected expenses.

Related Content: Emergency Fund Basics: The Step on Which All Other Success Is Built

You’ve Got This!

As you can see, financial wellness is not only an important goal, but it’s also rather achievable. Start with knowing where every dollar goes and using an app to keep your expenses on track. Then, pare down any debt and establish an emergency fund. From there, you should soon feel cool, calm, and collected about your money, which is truly a wonderful way to be.

Leave a Comment or Answer a Question Below: What is the best thing you have done that has led to financial wellness in your life? What advice would you give to someone who is using debt to buy the things they need or want? What is your favorite financial app to use? 

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