Financial Wellness, Managing Your Money for a Better Life!!!

 

 Building wealth is impossible without determining where your money will come from. The source of revenue comes from a job, business, investment, or self-employment. Then, the biggest nemesis is "the debt", a never-ending cycle if you cannot increase your income. This blog will teach you how to manage your finances and live the life you are meant to live. Your financial wellness is equally proportionate to your lifestyle and mindset, let's go ahead and look. 

Table of contents:

1.Change your mindset towards money

2.Good debt and Bad debt

3. Invest in yourself

4. Save and invest for future

5. Get on a budget 

6. Raise your income

7. Stop spending on luxuries

8. Use specific credit cards

9. Small loans or borrowed money

10. Not having insurance or opting for wrong insurance

IN A NUTSHELL

1.Change your mindset towards money

 

First things first, the foundation behind wealth creation is the mindset you have. This is a tested and verified statement by any financially independent person who would love to say. This begins the course of action when you dive into making money. What you say to yourself and what you talk and feel about money is much more important than how you manage your personal finances and the kind of business or work you do. So, change your mind and change your future.

 

For example, if you tell people that making money is hard or wanting more is greedy, that's a negative mindset towards money that pulls you away from making more money. The positive attitude is like “I deserve more money”. “My work will be recognised one day”, “My workplace gives me growth” and “I will be worthy of financial abundance”. “I am financially free”. 

2.Good debt and bad debt

 

Debt is a sensitive topic, even in your closest circles. The amount of debt you carry forward in the future decides how much money you will keep with you and how much to spend. Recurring debts or recurring monthly payments might lead to exhaustion of your energy. So, finding the difference between good and bad debt is vital to improving your financial wellness.

 

For example, Bad debt is when you borrow money from other people or financial institutions to purchase assets that lose value over time, don't appreciate over time, or experience a loss after spending money on them. Investing in asset classes that generate more capital or gains in the future is the natural way to determine that it's a good debt that beats inflation over the years. Gold, silver, land and stocks are few examples. Many other things evolve as time passes, and you need to discover that.

3.Invest in yourself 

 

This is a very sought out thing in today's world. Ask old successful people around you who are managing wealth; they say education is the most powerful tool in the current scenario because it is investing in yourself. You need to educate yourselves in a particular field or a field you desire to accomplish greatness and then it leads to your own understanding of financial education. Investing in any education is a good thing to attain your true potential. You have to invest in yourselves to grow.

 

You attended a school or college to grow yourself from where you are. Imagine if you hadn't done that, you would have missed many things in life; it's not just about knowledge but experiences that have made you who you are today.

4.Save and invest for your future

 

All right, people, this is where the work begins. While most people say investing for the future is one of their top financial goals,  we have some catching up. We are all behind on the retirement savings goals. No matter how much or little you have, there's still time to turn things around. Whether in your 20s or 50s, it's never too early or late to start saving for retirement! It would help you get prepared for your retirement years now.

5.Get on a budget

 

If you're not budgeting, you're living a life without focus every month, just making sure there's enough money to keep food on the table.  That doesn't help very long! Listen, a budget shows you as the king of your money. A budget lets you control your money; not the government, banks, or even your neighbors will decide how you can spend your hard-earned cash. Budgeting helps you focus on the money you make, regardless of how big or low it is. Just start doing it.

6.Raise your income

 

This is the most important in financial planning. Many people have no clue about how to raise their income. Only successful people find ways to increase their income. Increasing income depends on the nature of the work you do. Hard work is mandatory, but even more important is being smart enough to understand the field you choose to shine. It's essential to find your niche in your 20s and 30s so that we can find ways to raise your income. Finding our core strength and growing from there is the difference between a successful person and an ordinary person. In between finding your success, try to do some side hustle on your weekends if you genuinely want to increase your income.

7. Stop spending on Luxuries

 

Ok, you don't need to stop spending on your day-to-day bills, your mandatory monthly bills. You have to be careful about spending on extras. That fancy Starbucks coffee for a home-brewed cup of coffee. Instead of grabbing those fun gadgets in the electronic stores, avoid that area of the store altogether (pretend that part of the floor is haunting if it helps). Not telling you to totally terminate the luxuries but have it once in a while. It will be hard at first, but your money habits will significantly change as soon as you train your brain to stop spending. When you see the margin and progress, it gets addictive and you find more creative ways to sacrifice and save.

8.Use Specific Credit Cards

 

Credit cards are handy only if you use cards that meet your requirements. There are specific cards suited for business people, employees, etc. Credit cards are good only if there's cashback or benefits for buying a product or service. Don't buy every single or second thing on it.

9.Small loans or borrowed money

 

Borrowing money or loans can be a pain if it's done regularly. The monthly interest, irrespective of its percentage, can bring a massive disappointment after spending the initial cash. So it's essential to stay away from borrowed money as much as possible. Try to get loans only for things that are necessary and much needed. 

10.Not having Insurance or Opting for wrong Insurance

 

Insurance has become one of the most efficient ways to be secure, it's important to have insurance according to your needs. Still, some insurance plans can bring sorrow rather than happiness once we want to claim it because there will be few restrictions while claiming it. Health, car, bike, life insurances etc are necessary to be safe but you need to read the terms and conditions carefully before accepting insurance policies.

IN A NUTSHELL

 

Financial well-being begins with a positive mindset and getting rid of bad debts. Start budgeting, saving and investing. Personal finance management is essential for a happy and peaceful life. Paying attention to money management and learning about the basics of money will help you master personal finance. You can start by making reasonable financial decisions while sitting with your family and allocating time towards it.

Public questions on financial wellness and solutions provided:

1) How to maintain financial wellness and increase income?

 

A: Keep budgeting, saving. If you want to raise your income, your mindset needs to shift. For that you can attend a millionaire mind intensive program(mmi) by Success Gyan

which is happening every year. It will help you to begin your journey with a mindset shift.

2) How can I determine my financial wellness?

 

A: Your financial wellness depends upon your lifestyle, mental health, physical health and your needs etc. If you think you are not financially good enough, you can go through the courses offered by SuccessGyan. You can choose whichever course is suitable for you. If unsure, you can contact us at SuccessGyan Courses

3) What is the purpose of financial wellness?

A: The purpose of financial wellness is to live a life you dream of and have a peace of mind. Its purpose is to also provide the needs and wants for your loved ones, securing your future and for your retirement.