How to improve your financial health

How to improve your financial health

If you make staying in good health a top priority, good for you! Keep those good habits going to improve your financial health. Much like taking care of your physical health, staying financially healthy means being mindful and adopting some positive behaviour on a regular basis.

Set a budget

If you don’t have one already, make sure that you set up a household budget. This is the best way that you’ve got to make sure that you are spending within your means. It’s also a great way to track your spending and identify areas for improvement in your financial management.

Be smart about savings

Identify savings goals and have short, medium and longer term goals. Make sure you include retirement planning and emergency savings as part of your savings plan.

Learn about investments

Don’t make the mistake of assuming that you need a lot of money to invest. You can start small and watch your savings grow over time. Become financially literate about different types of investments and asset classes. Understanding what’s involved in basic investing can help to minimize your risk and maximize your growth.

Check your insurance

One of the leading causes of accumulating debt is being underinsured in the event of a disaster. Check your auto, home/tenant and life insurance policies. Find out what kind of disability and medical coverage you’ve got through your employer and make sure that you are adequately covered.

Cash only

The best way to stay out of debt is to avoid accumulating it in the first place. Live on cash only and only use credit cards if it is within your budget and you are able to pay it off every month.

Become a deal hunter

Commit to yourself to never pay full price or a premium for anything. That means knowing how to source sales, discounts and using clever shopping strategies, like using coupons, price matching and buying in bulk.