Three Steps Towards Better Financial Health

Written by Finance Video. Posted in Homepage

Finance video

At some point, everyone takes a good long look at their finances and either feels comfortable, or starts biting their nails. Despite all of our stressing and best intentions, Americans have a lot of trouble responsibly managing their finances. Only 18% of Americans believe they will have enough money to retire, and 40% are not saving anything at all.

If you want to have more money, you do not necessarily need a Masters in Banking, though a Masters in Banking degree could certainly help. You can read articles on saving money to get some advice, but you would do better to develop strategies for saving money so that your nails get to recover from all of that biting.

If you want to rule your bank account, and not have it rule you, here are three tips.

  1. Understand the money you have.
  2. Did you know that on average, the American family only has $3,800 in savings? Think about what you have in savings, and if you are not happy with that number, then that is the first step towards getting to a better financial situation. You have to first understand how much money you have, and what you want your goals to be, before you can make them a reality. There are many online financial management tools that can help you track your goals, budget your money, and better understand your financial picture.

  3. Save money.
  4. The internet is chock full of ideas for saving money, but here are some to get you started. You can put aside 50 cents every single day for one year, just have it automatically transferred from your checking to your savings, and by the end of the year you will have nearly $200 put away for an emergency fund. Track every expense, and look for ways to cut down on things that are not absolutely essential to sustaining your life. For example, you can probably live without those five cups of Starbucks coffee each week. When purchasing groceries, look for bulk items and compare unit prices. You can save some money on those paper towels if you do not purchase them in individual rolls.

  5. Make money.
  6. I take back what I said earlier, maybe you want to consider getting a Masters in Banking. Such a degree could set you up to be a financial analyst, and could help you get a really well paying job. On top of that, the skills you learn with a banking degree program will help you better manage and save your money. Making more money is perhaps the hardest part of any financial plan. Remember, if you eliminate some debt you will find that there is more money each month to go around. In this way, paying off your debts can make you feel as though you earn more money than you actually do.

Understanding, saving, and making money are not easy tasks. If they were, everyone would be financially comfortable. However, small steps here and there can make a big difference. If you want to achieve better financial health, then do what you can in the time that you have to better manage your money.

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