Powerful Financial Tips and Tricks

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Financial Wellness Month in January is a refreshing theme after a busy holiday season and an excellent opportunity for families and individuals to start the new year off on the right financial foot. Establishing a healthy relationship with money starts with seeking a holistic understanding of the role of money in your life. For instance, how do you give, spend, and invest? Also, ask yourself, is there value behind all my financial decisions? It is time to set yourself up for success for the rest of the year!

Financial Wellness Checklist

Your Financial Tips and Tricks!

Here are ways to promote a healthier financial lifestyle in 2024 that will help you to know when to save or spend your money – wisely of course!

1.      Create and commit to a monthly budget. Know the best time to spend your money on expenses and those extras that make you feel good. You will gain a sense of control and freedom when planning for unexpected financial situations.

2.      Save consistently. Love to travel, attend sporting activities, and so on? This is the best time to create a monthly savings plan to help purchase items you need and start looking for discounts to help save money. Set up an automatic paycheck deposit to your checking or savings. You will not have to think about how much and when to save.

3.      Record and track the due date of your bills. Online banking programs may have a way to track your expenses and send reminders of when to pay. You can “go old school” and use Microsoft Excel to create a list of all expenses and their due dates. This will help to never miss a payment and planning when trying to save money.

4.      Less is more – limit credit cards and loans. A healthier credit score is based on how little you spend and owe financial institutions. It also keeps your expenses under control by avoiding overdue payment fees and interest.

5.      Have debt? Start small. Whether unexpected expenses or unemployment hit, pay off the smaller balances first. This will give you the willpower to tackle larger balances. You can also call creditors to inquire about income-driven payment plans.

6.      Know your credit score. Make it happen and check your credit report quarterly. Especially when planning large purchases, like a home or car.

7.      Emergencies can be unexpected. Set aside three to six months of expenses if possible. Otherwise, having a month on hand can make all the difference. Unemployment is the biggest reason, the second is staying home to take care of a loved one.

8.      Plan for retirement and college education. Invest in a 401(k)/403(b) or individual accounts such as IRAs. Especially if a company has a match program. Whether in the near or far future, opening a 529 savings plan is tax-free, and helps pay for tuition costs. 

9.      Sign up for a loyalty program. This will assist in saving money on everyday items and gifts. Shop local and minority-owned businesses to keep money in your community.

10.  Know your tax bracket. Consult with your tax preparer to ensure you take out the right amount of money, so you do not owe federal or state taxes. This is especially the case for those with more than one job.

Significance of Financial Wellness

So, what is the significance of Financial Wellness and putting in place all the ideas mentioned above! Financial wellness is not just about earning a living. This state of mind and action is about managing your finances effectively to achieve your financial goals. Not to mention reducing financial stress. Being in a state of financial well-being is crucial for four reasons.

1.      Reducing financial stress leads to more focus on your work and home life.

2.      To be financially healthy means an increase in productivity and worry.

3.      When there is control over your finances, you can experience a higher sense of self-worth and satisfaction.

4.      The steps you take now to become financially sound lead to an enhanced retirement and secure financial future.

Contact MCB Consulting Group to start your financial wellness journey - Click Here