Financial health. That's something you don't always hear about until a bill is due. But just as your physical health is necessary for you to live, your financial health is just as important. Having money and resources is not evil and managing both of those is your duty for yourself and your family.
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So we've comprised 5 simple tips to help you along the way to having a stronger, healthier financial life.
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Try to Use Cash as Much as Possible
We know that this is the digital age, but cash can help you save money. In a recent Harvard study, it was found that people who make purchases using their credit card spend 4 TIMES the amount that they would if they used cash.
It's a psychological thing. Use cash, you can literally "feel" the money leaving your fingertips, so you don't spend as much.
If you can't use cash, use a debit card that immediately takes the money away. Remember, credit is just that: credit from someone else that you have to pay back--with interest!
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If you think you want to buy something, save up for it, THEN buy (that may be a little TOO REAL for many of you).
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Go Old School
Nowadays, many people's idea of balancing their bank account is simply checking their balance, but that's not it.
Create a simple spending plan that tells you where you want your money to go every month. Don't leave any dollar out. "Miscellaneous" dollars are the ones that are spent mainly on impulse buys and things you don't need.
Take a hard look at what you spend one month and then the next month, and create a spending plan for every dollar you make.
Create A Job
There's an old saying that says, "The best cure for unemployment is a job". And with the invention of the internet, there are a ton of money-making ways you can create including selling old, used goods to offer your services on sites like Fiverr.com and craigslist. Bring in extra money any way you know how and just use that as extra savings NOT as extra spending money.
Stop Worrying About What Other People Think
A recent Forbes.com article showed that out of the 400 richest Americans, nearly 80% of them started out buying used cars (at least 3 years old and more) and clothes (roughly 2 1/2 weeks worth of clothing and then would wear it again) because they wanted to be wealthy and didn't care what other people think. It's time to live like no one else now so you can really live like no one else later.
Pay Off Government Debts Quickly
Listen, it's the government's job to get their money and any IRS agent will tell you, sooner or later, they will get the money you owe them. So, if you owe the city, town or government, work with them to see how you can gradually pay that down, starting with the LOWEST amount first.
Going for the lowest amount each month not only makes you feel like you're accomplishing something, but also gives you a solid payment history.
We know it can be rough at times, but the first part of any financial health plan is the belief that you can do it. Believing in your ability to create new wealth for you and your family is key. It can be hard, but it's definitely worth it.
