7 tips to improve your financial wellness

Have you ever regretted buying something that goes beyond your needs and budget? Are you feeling stressed because of your finances?

Most of the time, people become uncontrollable and overspend way too much on extravagant things which they regret buying after.

According to Always Frugal, people overspend because of three common reasons. These are, impulsive buying, lacking a track record of all their expenses, and poor money management.

If you can relate to one of these things, it’s not too late to turn things around. There are several ways to take control of your finances and avoid being an impulsive buyer.

Uploan has provided these 7 tips for you to help you develop good financial habits and improve your financial wellness:

1. Set a budget

Setting a budget and sticking to it can help maintain balance in your living expenses. Try setting a budget every day or every week. You may be able to control just how much you can spend in a day or a week. Be realistic and don’t go overboard with how much money you can spend in a day. 

In case of emergencies and you might need to spend a little over your budget, just make sure you still have enough money that you can budget for the next few days.

2. Keep track of your expenses

Use a journal or a columnar book to list and total all the spending activity that you’ve done for the day including the coffee that you’ve had on the way to work or those snacks and bottled water that you’re purchased while waiting for the bus to arrive. That way, you can see all the extra expenses that you can cut. You can also compute them weekly and sort the necessities so you will know how much budget you need to set for the week.

3. Monitor your bills

It can be stressful when you have to pay for your bills and other financial obligations simultaneously. The good news is you can avoid it by monitoring your recurring monthly bills and expenses as well as saving enough money in advance for them. Tracking your income might also help you manage them efficiently.

4. Make saving a habit

Keep a piggy bank or a mason jar where you can put all your extra quarters at the end of the day. This can be your emergency fund or travel money if you can save a large sum every day. This can be a good investment as well if you’re planning to keep it for a long time. The bigger the amount you save, the better.

You can put your savings in a bank account if you don’t want to spend it anytime soon, or you can also consider investing, that way, you’re also securing your future.

5. Manage your loans

Be it to a legal, trustworthy and SEC-compliant lender or a bank, make sure to keep track of everything and make a payoff on time to keep a good record, as well as to avoid having the amount of debt you already owed doubled. Maintaining a healthy amount of credit flow is also an ideal way of managing your loans well.

If you have three or more credit cards, you might need to consider deactivating one or two of them. Aside from the fact that it would surely lessen your credit card spending, it will also help you balance all your other loans.

Another important thing is when you’re applying for a loan, make sure to check all the fees and calculate the interest rates. Benchmarking several options to find the cheapest and the best lender for you is also necessary before you apply for a loan.

6. Take control of your financial decisions

This can also be interpreted as being smart with your finances and not letting your costly self get the best of you and just living within your means. There are a whole lot of factors to consider in taking control of your finances and it’s best to start with getting your priorities straight and establish the difference between needs and wants. If we just think before we spend, we might be able to save ourselves from the horrors of a materialistic world.

7. Write down your financial goals

By knowing what your financial goals are, you are setting yourself up for success and securing your future. You can also live up to your financial expectations if you have a goal to pursue.

Remember that your financial wellness is in your hands, it starts with how you live your life and being smart with money.

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