For people who struggle financially, a new year often brings a resolution to improve their financial well-being. Sometimes, however, they end up repeating the same cycle. As the countdown for 2024 begins, it’s important to learn ways you can make your wish of financial buoyancy a reality. Keep reading to learn more.
5 Ways to Achieve Financial Wellness in 2024
Here are some ways you can improve your financial health this coming year:
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Create a Savings Plan/Goal
Your savings goal can be the motivation you need to put money aside every month. Determine your long-term goals and make shorter plans to meet them. For example, if you intend to buy a car in the future, decide how much you can put aside each month to get the car.
Also, you need to consider emergency savings. Generally, having at least three months’ worth of expenses in your emergency fund is good practice. If you don’t have that, make a feasible plan on how much you can save each month to build your emergency fund.
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Develop a Debt Repayment Plan
There are different methods to pay off debts quickly. First, you can try out debt consolidation. This involves taking out one loan to pay off other debts, The benefits of debt consolidation are lower monthly payments and a relatively lower interest rate.
Another method to pay off debts is the debt snowball. It involves paying off smaller debts first, then working your way into bigger debt repayment. The primary advantage of the debt snowball method is the motivation that builds as you see debts disappear.
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Find Ways to Reduce Expenses
Living within your means is one of the best ways to attain financial wellness. Don’t buy things you don’t need. Don’t buy more expensive items when you can get a cheaper one with good quality. Stay out of competition. It’ll drain you quickly.
Rather, track all your expenses. Cut down on things you don’t need. Find cheaper alternatives to some of the things you spend money on. For example, buying some grocery items in bulk might be cheaper than buying per unit. Also, you can cut down utility bills by using energy-efficient appliances and cultivating energy-saving habits like turning off the lights when no one is around.
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Invest in Financial Education
Financial education is important if you want to build wealth. It might seem like another expense but it’s a worthy investment. You’ll learn about some of your money habits and how you can make better financial decisions.
Additionally, you’ll learn how to make your money work for you. So, while you mind your 9-5, you’ll learn how to put your money in investment deals, to enjoy a monthly dividend that can go into wealth generation. Getting a financial education might be the only thing you need for a financially secure year. If you can’t afford it, make it a goal and save for it.
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Don’t Hesitate to Use Applicable Assistance Programs
There are numerous assistance programs available to low-income earners. These programs can help lift the burden of certain expenses. An example is Medicaid. Medicaid is a health insurance program to assist low-income earners in health expenses.
Another example is the Supplemental Nutrition Assistance Program (SNAP) which provides food purchasing assistance for eligible low-income families. Others include the Supplemental Security Income Program, Earned Income Tax Credit, and more.
Conclusion
Financial wellness is attainable, even on low income. It all begins with your mind. When you put your mind to it and practice all the tips in this article, you can rest assured that your financial health will get a boost.