Ladies and gents of Blog Xpressions, please welcome Eboni Owens! Eboni and her husband started this awesome financial wellness community called The Enrichment Group. Their goal is to help people like you and I, to budget, save and grow. Get ready to soak up these tips!
10 Practical Ways to Help Change those Negative Money Habits into Positive Ones
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As we jump into 2017, we often overlook the bad financial habits that followed us into the New Year. While our list of resolutions may be admirable, how are we planning to enhance our wealth this year?
A 2016 survey highlighted by Forbes.com, showed the unsettling financial reality most are facing. Over fifty percent of American households are living with less than $1,000 combined in their checking and savings accounts. Unfortunately, living check to check has become a social norm rather than an alert to make improvements.
These 10 financial tips are practical ways to help change those negative money habits into positive ones:
Become Financially Literate
Invest in financial books or classes to learn what it takes to grow your finances. You may want to join a financial literacy group that can enhance your current knowledge.
Set Financial Goals
Goal setting allows a clear path to achievement. Utilize this method in your finances to see measurable results. Write out a specific plan and the steps to achieve your goals.
Save at Least 3 Months’ Worth of Expenses for an Emergency
Start building your emergency fund by saving $1,000. From there, go on to save a minimum of three months’ worth of expenses. This will protect you in the event of a job loss or unforeseen emergency.
Pay off Expensive Debt
Some debts can be more costly than others based on the interest rate. Make this debt a priority to pay off as it tends to grow your balances quickly over time.
Improve your Credit Score
Paying down debts will automatically start to improve your credit score. Also, automate your monthly payments to ensure everything is paid on time.
Max out Retirement Savings
Don’t miss out on free money that your employer may offer through a retirement match program. Contact the company that manages your retirement plan to ensure your contributions are on track.
Live on a Monthly Budget
Budgeting is the key to living within your means. Understanding your monthly income and expenses will allow you to appropriately plan your spending. A budget is a guide for what you can and can’t afford.
Use Tools to Help You Save More
Have a certain amount of income automatically moved from your checking to your savings account each month. You can also use websites like www.mint.com to help you budget and show areas where you can cut back to save more.
Check up on all Insurance Policies
Review all policies to make sure there is enough coverage for you and your household. Being under insured can send you into a financial tailspin if an emergency occurs.
Calculate Your Net Worth
To determine your net worth, reduce financial liabilities from your assets to see what remains. Make increasing you net worth a financial goal in the New Year.
Don’t wait till tomorrow! Start incorporating these tips into your financial plan today! Need some financial motivation? Swing by my Facebook page for quotes and helpful information.