There is no doubt that personal finance is very important to all of us.
In fact, new study links financial planning with health and happiness.
For the majority of Americans money is a leading cause of stress, and we are definitely losing precious sleep over it – an average of 21 (!) hours each month from stress.
The good news is that your personal finance does not have to be complicated, and just by establishing a few healthy financial habits can help you not only achieve your financial goals, but also take money worries off your mind, reduce stress and actually improve your overall well being.
According to a new Landmark Study, people who take control of their finances are healthier and happier!
Regardless of income, people who have their financial planning in place and feel financially secure, are significantly more likely to rate their health as excellent to very good and describe themselves as: happy, confident and optimistic.
They are much less likely to say they are worried, regretful or depressed.
Those who are financially secure also report less stress and fewer stress-related health symptoms such as fatigue, anxiety and sleep problems.
If you want to be physically fit, you have to develop some healthy habits like exercising and eating well.
What kind of habits does it take to be financially fit?
I came up with 6 most important things everyone needs to do in order to achieve financial success. Here we go:
for Successful Personal Finance:
1. Spend within your budget
Always spend less than you make!
A simple idea that is also difficult for many people to follow.
With a plan and budget, you’ll know what to save for the future and what to spend today and remain in control.
Knowing where your money is going on a daily basis can be helpful for setting a realistic budget.
2. Pay off your credit cards every month and have good credit standing
Living within your means and eliminating all or most of your debt, especially the debt on high-interest credit cards is a must.
3. Take active steps to protect your family from financial misfortune
Plan for the unexpected!
Six to nine months salary in savings is a good rule of thumb.
Also consider protecting your assets and income with insurance to protect you and your family in case of death, unexpected disability or chronic illness.
4. Have a financial plan
Your financial plan can be as simple as knowing your expenses, your income and what you plan to do with the difference.
Knowing your net worth – your assets minus your liabilities – will give you a good snapshot of where you stand.
5. Have short- and long-term financial goals
Part of your plan should be financial goals that you hope to meet in the next three months to one year, and then longer term, like five to ten year goals and then 20-plus-year goals.
6. Take active steps to achieve your financial goals
Even small steps add up – the important thing is to do something and being consistent about it!
Working toward your goal could mean cutting out impulse purchases or putting aside $100 each month to build an emergency fund.
They say that it takes 21 days to establish a new habit.
So decide on some action steps, make some simple changes, and commit to a few weeks of practice.
Utilizing our Six Step Financial Planning Process and practicing some discipline, before you know it, your finances will be healthier than ever and you will achieve financial success!
What are your expert tips on how to stay financially fit?
What are your Personal Finance goals?
More Articles on Personal Finance:
- 5 Steps to Make Your Personal Finance a Success in 2012
- Personal Finance: Five No-Brainer Ways to Make Money
- Three Simple Steps to Reinvent Your Career
- How to Get a High Quality Remodel for Less
- Why You Should Stick With Your Home Computer
Image Source: purpleslog’s photostream on Flickr
We hope to see you again. Check back later for the new updates to our Personal Finance Blog. There is so much more to come!
so I can show you: