January 2022 came and you made your resolutions about your financial health. Get your spending in order, pay off your credit card debt and focus on making smart investments. Well it’s almost April and your checking account is still in shambles, interest charges are piling up and the idea of savings stresses you out.
Having your finances in order can affect your physical and mental health and is key to securing your future. Here are 5 ways to get financially fit!
1. Figure Out Where Your Money Is Going
Take a look at your spending patterns. If a majority of your money goes to eating out and shopping, it is time to reevaluate your spending. Create a budget for recreation and stick to it.
Once you establish where the holes are in your budget, you can use free budgeting apps to create budgets, track what you’re spending and where you’re spending it.
Once you see how all of your expenses are adding up, you can decide where you need to cut back and where you can afford to splurge a little.
2. Start An Emergency Fund
Saving for a rainy day really comes in handy when unexpected expenses come up. If you stay ready, you won’t have to scramble and pull from your savings or use your credit cards to keep yourself afloat.
Three months’ worth of expenses is good but six months to a year is ideal. Be sure to put this money in a high-interest online savings account, a certificate of deposit or a money market account so you can let those savings grow over time.
3. Manage Your Debt
Identifying your debt and creating a plan to get rid of it is key when working on your financial health. Having debt can slow down your progress and make it even more difficult to save. But don’t get too discouraged, there is a way out. Review all of your outstanding