Financial Health is important to everyone and throughout an individual’s life, they look for as many ways as possible to improve their prospects of creating better health financially, however, the manner of “perfect financial health” differs from person to person. There are those who like to live with a lot of money so they can buy lots of goods, they very much live within the consumer society without any regard to much else. There are also those who just want to live comfortably where they have the basics with a few luxuries but they enjoy simpler things. Finally, there are people who want millions and millions so they can do and buy anything they wanted… But, what can help you achieve better financial health?
Slash your debt!
This might seem like a simple idea however it is increasingly difficult within the consumer society that we live in, and if you are in debt this takes looking at what you owe and understanding how bad your situation is. A good simple idea is to list what you owe starting from smallest to highest, then start repaying them immediately, tackling the smallest amount first and working your way up.
Plan everything possible
This works well in conjunction with the first idea, but the need to plan where every penny goes is necessary as once you know how much your outgoings are, you can see what you can and can’t afford. This well help you not only reduce your chances of accumulating debt but help get rid of any outstanding debt, knowing where you are going is important because it will also give you a decent safety net in the future.
Save as much as you can
There isn’t much more than is need to be said, if you save as much money as you can now, then you’ll be able to afford more in the future. Whether it is a smart savings plan designed so that you can retire earlier or whether you can enjoy life travelling, it is always wise to start saving. You need to think of a scenario where you want to be and save for that moment, if it changes during the time of saving then at least you already have started saving for something.
Property, expenses and job
Three key points here, are you in a job that pays enough for your lifestyle? If you are not find a place of work you want to be in and work towards that moment, take a chance on opportunities even if it means a short term loss of money, because in the long term you will be where you want to be. Do you rent or own? The current market is slowly creeping towards a crisis and it is not looking like it is going to be solved, rents are ridiculously high, so the chances of getting a low rental property are remote. However, as long as you are in a position of being able to buy, you can get a decent mortgage rate and that will cut your cost significantly.
Your monthly expenses are vital and knowing where every penny goes is important, if you know where your money goes then you will be able to plan accordingly to any potential pitfalls.
Does financial health lead to a better quality of life?
The idea that having plenty of money will definitively lead to a better quality of life is debatable, money opens up opportunities at having a better quality of life, except this does rely on that person holding a perspective that money does indeed give you a better quality of life. Every person has an ideal and understanding when it comes to money and money means different things to different people. Some see it as a necessity to thrive in the world, others see it as a tool to survive in the wold, but there are those who see it as both a tool to survive and necessity to thrive.
Living comfortably is the aim for everyone but it’s what each individual sees as comfortable, and it is those ideas of comfort that leads people to creating the perfect financial health to them. There is one way to help everyone and that is to become as self-sufficient as possible. Comforts in life is what all of us should aspire to reach and whatever those comforts may consist of, creating an opportunity for them by making yourself financially healthier is incredibly important.