Eight Strategies to Improve Your Financial Health in 2022
February 22, 2022
Maintaining financial health is an important part of your overall physical and mental wellbeing. According to a December 2020 CreditWise survey, 73% of respondents noted that worry about their personal finances ranked as their #1 cause of stress. Financial stress can manifest itself in many physical forms including poor sleep, digestive issues, migraines or headaches, diabetes, hypertension, mood swings, fear, anxiety, and depression.
The new year is a terrific time to take a pulse check on your financial health. We’ve gathered eight strategies to help you improve your financial health, reduce your stress and protect your physical wellness.
- Set Up a Monthly Budget
Create a budget that takes into account your financial goals and your current expenses. Track income and expenses monthly and revise as needed.
- Cut Expenses
Look for ways to cut expenses, such as cancelling gym memberships and magazine subscriptions or cook instead of dining out. Every bit counts, so get creative!
- Increase Income
Consider starting a side hustle or taking a part-time job to bring in extra cash. You can also sell unwanted items online or in your community.
- Reduce Credit Card Debts
Use extra cash to pay down your credit cards. Consider switching to cards with lower interest (or better rewards) and set up automatic payments to avoid late fees.
- Beef Up Your Emergency Fund
Once your credit cards are paid off, use your extra cash to beef up your emergency fund. Build up to three to six months of expenses in an easy-to-access account.
- Review Your Investment Strategy
Periodically check the status of your investments, track your returns and perform an annual asset reallocation. Increase your retirement contributions, when possible.
- Create a Will and Other Legal Documents
Ensure that you and your loved ones are protected through careful estate planning. You’ll need a will, a designated power of attorney, health and other documents.
- Keep Up with the Latest Financial Information
Stay on top of the latest finance and economic information by reading books, blogs and newsletters.
If you have questions about the ups and downs of the current economy as well as other issues, register now for the virtual Economic Forecast on Thursday, February 24, 2022 at 12:00 P.M. Attendees will listen to insights and updates on these and other hot topics from economic experts. bit.ly/2022EconForecast
While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
Sources: https://www.purdue.edu/newsroom/purduetoday/releases/2021/Q1/mental-well-being-inherently-connected-to-financial-wellness.html https://www.forbes.com/advisor/in/personal-finance/how-to-have-better-financial-health-in-2022/