Financial Well-Being Starter Kit

Financial wellness can be defined as "having a sense of financial security and financial freedom of choice, in the present, and for the future." Financial literacy gives us an understanding of money-related topics and skills, allowing us more control over our financial success and future. Being equipped with the knowledge and the ability to manage our financial needs leads to improved overall health. In this edition of Positive Pulse, retrieve your financial well-being score, learn the necessary steps for creating a budget, and get tips for saving money.

Develop a budget based on your monthly income, expenses and savings, and then live within your means. Should a shortfall occur, choose to adjust your budget rather than rely on a credit card. Below are some steps you can take to create a budget:

1. Calculate your net income
2. Track your spending
3. Set realistic goals
4. Make a plan
5. Adjust your spending
6. Review your budget regularly

1. Eliminate Your Debt

Debt can be a sneaky expense! Interest can creep up on you and make it feel as though you are running in place. However, once you're free from paying interest on your debt, that money can easily be put into savings.

2. Set Savings Goals

One of the best ways to save money is by visualizing what you are saving for. If you need motivation, set saving targets along with a timeline to make it easier to save.

3. Annualize Your Spending

Do you pay $20 a week on fancy coffees? That's $1,000 you're removing from your budget for coffee you could make at home for much cheaper! Suddenly, that habit adds up to a substantial sum.

Better Money Habits. (2022, July 18). How to create a budget in 6 simple steps. Better Money Habits. Retrieved October 15, 2022, from https://bettermoneyhabits.bankofamerica.com/en/saving-budgeting/creating-a-budget

Content Type: Article Print this Article, & Content Type: Article Print this Article. (n.d.). 10 best ways to save money. RegionsBank. Retrieved October 25, 2022, from https://www.regions.com/insights/personal/personal-finances/budgeting-and-saving/10-best-ways-to-save-money

Website: www.smolaconsulting.com
Location: 260 East Main Street, Rochester, NY, USA
Phone: 5857774080