How To Improve Your Financial Health

February 04, 2022
Reviewing your finances regularly is an important part of financial planning. A good financial plan can help you stay on track toward achieving your overall financial goals. Here are some helpful tips to get you started on the road to improving your financial health:

Review Your Investment Strategy

Review your portfolio periodically to assess the status of your assets, how they are maturing, and to keep an eye on your cash flow. It’s important not to get caught up in the short-term volatility that investment markets experience. It’s natural for the value of your investments to rise and fall over time. However, you should have a reasonable idea of how your investments have performed, allowing you to adjust where necessary. Over the years your financial situation will undoubtedly change. Your investment strategy should too.

Examine Your Expenses and Reduce Unnecessary Splurges

While you may try to stick to your spending goals most of the time, it’s easy to slip up sometimes and perhaps not even notice. This may result in your savings being less than expected at the end of the month. Try creating a budget and recording all your purchases or transactions each month. Chances are you’ll find some unnecessary spending habits that you can cut. Simply reducing the number of times you eat out or canceling that subscription you no longer use will make a bigger impact than you think and also help you stick to your goals.

Strengthen Your Emergency Fund

The past years have proven to us the importance of saving and creating an emergency fund to help us through tough times. An emergency fund can act as a cushion in case of unexpected events, such as a sudden job loss, major car repairs or hospital visits, etc. Ideally, your emergency fund should be three to six months of your salary with consideration given to your expenses. It’s a good idea to set the funds aside in a savings account that you can access easily, as emergencies can happen at any time and having quick access is important.

Review Your Debt  

Unfortunately, some level of debt has become a regular part of financial life for many of us. Thus, regularly reviewing your debt and payment schedules is important when planning your budget. Look for opportunities to consolidate or refinance your debt at a lower interest rate or lower monthly payment.
Strong financial health has a direct impact on our wellbeing. It can help us to meet our essential and non-essential needs, explore our potential to the fullest, and allow us to lead a worry-free life on our own terms. For more financial tips, visit Point Breeze Credit Union’s blog.