An essential steps to attain a healthy financial status is to keep your finances well organized, be contented, Avoid impulse buying though there are a lot of factors attached before one can attain a state of healthy finance.
Attaining a stable and healthy financial status is quite simple only if you can possess these qualities; be contented, be disciplined about your finances, be deliberate about your expenses.
Having a healthy finances is so important because it gives financial stability and peace of mind. Below are few tips to attain a stable, organized finances after you have assessed your financial health and budget.
5 Tips To Attain A Healthy Financial Status
1. Pen down specific financial goals.
One thing I have always do since I became aware of financially freedoms in one’s finances is to look back at those financial goals I set from the begin of the year.
By reviewing and comparing the progress made so far in each of the financial objectives set at the beginning of the year compared to what i achieved.
My siblings and I do this every November yearly, it is more of like a competition of who attained his or her financial objectives for us because it is a family culture. But as times goes on we learn from each other on the strategies used in achieving the set objectives from each individual.
The set goal or objective ranges from potential house projects, investment goals, vacations and so on. After analyzing how everyone’s plans played out. We start-out the financial journey for the following year by writing down 5 specified goals that must be attained by each individual and includes it in our yearly budget.
Eventually at the end of each annual meeting I do realize my flaws on why I did not attained those set objectives. This helps me to know my weakness in my financial status which in turn become a strengthening point for the following year financial goals.
2. Be deliberate about your financial plans
Indeed one must be deliberate and intentional once you have established a plan for your finances. it is important to regularly track how well you are doing compared to the plans you had.
Been deliberate about your finances is by closely monitoring your plans weekly with the help of Some budgeting Applications like Mint, google sheet and excel.
It is very important to review your expenses on regular basics, I do review my expenses every 2 weeks because it helps me adjust spending and that is a way to checkmate if I am not spending beyond set monthly budget. it also helps to caution careless spending attitude and adjust spending for the rest of the month.
Conversely, it a principle that can be adapted if you want to be deliberate about your finances and stay within the monthly or yearly set objectives.
3. Avoid impulse buying
This is one main things that disrupt budget mostly buying at the expense of what will Alter ones finances. we can be tempted to make purchases fit in the budget simply because we can afford to.
Those purchases don’t always give us the pleasure we desire or help enhance our financial lives.
Sometimes while on social media especially Facebook i do come across some online goods such as shoes, wrist watches, T-shirt in my news feeds, for example Jumia, konga, Amazon Online Stores that pops up their products.
Even after ignoring them by strolling-by I still end up coming across it. Final i was been tempt to open it then add some of those product to my cart and check-out for delivery.
This is an example of impulse buying, it is so convenient making impulse purchase online because they only require few clicks.
Those shopping website are good at what they do, they will still showcase similar items you formerly purchase to encourage you to keep purchasing. Before you realize it those small impulse purchases could have add up to significant amount of money which later jeopardize ones budget.
However, I was able to tackle been at the verge of impulse buying by leaving my purchase cart for some days, even weeks sometimes without checking-out.
By the time I come back to the cart I realize I have already lose interest in them and I remove them from my cart.
This is the way I have been able to avoid impulse buying that do alter my budget.
4. Budget for large expensive items
High expensive items are things such as car, house renovation, Christmas, trips, or charitable donations. These expenses are often huge so what I do is to include them in the yearly budget and also approximate the period need for such expenses might come up.
Also I like to include miscellaneous expenses on the yearly budget for unforeseen expenses because it helps to give a healthy financial status. And it also helps to keep your financial plans in order and avoid touching your emergency funds unless necessary.
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5. Have multiple savings account and name them.
Having multiple saving accounts and naming them is a way of been deliberate about your healthy financial status. Having multiple accounts for different financial purpose can help to keep track of one financial progress.
The Multiple saving accounts can be in short and long term savings accounts. In which the short term savings account is solely using in managing reoccurring expenses such as cable or WiFi subscription, repairs, groceries or any expenses that show up in within days.
While other funds such as emergency funds, investment funds or an after-tax investment can be in the long term savings account.
In conclusion, to have a healthy financial status you have to be deliberate with everything concerning your financial plan. Weather you are salary earner, a business owner or you’re an investor is not enough in building your financial freedom and having a stable finance. Stay focus on your finances and be organized to ensure you achieve your financial goals.