Smart management of one’s money is a critical part of financial wellness and long-term financial stability. Yet for many people, coming to terms with financial management strategies can be elusive. At Harvest Financial Planning, LLC, our professionals can work with you to help you manage your financial wellness. Call us today to get started.
What Is Financial Wellness?
Financial wellness generally refers to the “overall financial health” of an individual, and is also known as financial wellbeing. There are many components that contribute to a person’s financial wellness, including:
- Having enough money for emergencies;
- Being financially prepared for different life events, including retirement;
- Keeping spending within one’s financial means; and
- Having a financial plan for the future.
The exact definition of financial wellness may differ slightly depending on a person’s goals and lifestyle.
Steps to Achieving Financial Wellness
You can start to manage and sustain financial wellness by following straightforward financial wellness tips. The steps to achieving financial wellness include—
- Obtain a source of reliable income. Without a reliable income stream, it will be hard to manage financial wellness, set a budget, save for the future, or improve one’s credit score.
- Set a budget. Setting a budget is a key part of financial wellness. It’s important that you understand exactly how much you’re making and how much you can afford; this way, you’ll be able to manage spending and saving.
- Start saving. Once you know how much you have leftover to save each month, it’s time to start saving smartly. In addition to creating an emergency fund in cash, you should also be investing your money, too. Talk to a professional about different types of investment accounts and retirement savings accounts that exist.
- Improve credit and reduce debt. If you have any debt, one of your top priorities should be paying off the debt as soon as possible. Simultaneously, you should also focus on building your credit. Paying your credit cards on time and in full is one of the best ways to do this.
- Understand your long-term financial goals. Once you’ve mastered the above, it’s time to start thinking about your long-term financial goals. When do you want to buy a house? How much money will you need for retirement? Do you have kids or grandkids that you want to leave your estate to?
Call Our Financial Planners Today
While creating a budget may be something you can do on your own, understanding investment strategies and long-term financial management tactics may be best supported by a professional. At Harvest Financial Planning, LLC, our financial planners are available to answer any questions you have and support you in managing financial wellness. Call us today to learn more about how we can support you.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.