Here are 7 simple steps towards financial wellness:
- Have a reliable income
Being financially well starts with having a reliable income and knowing at a consistent time, you will expect to be paid a certain amount. Steady and reliable income is one of the cornerstones of financial wellness.
2. Live within your means
Keep track of your monthly income and expenses and find ways to free up funds to cover your outgoings if you need to. Set a budget for how you will spend the money you earn.
3. Have a saving Plan
A savings plan would include investments in Property, stocks, Insurance or investment plans
4. Spend wisely
Get into the habit of dividing up your expenses into needs, wants and savings or debts. If it’s appropriate, aim to spend 50% of your income after tax on needs, 30% on wants and 20% on savings and debts each month.
5. Avoid excessive borrowing and manage your existing debt
Aim to borrow only what you can reasonably afford to pay back. Take steps to manage debt that you have already, for example, cut back to free up capital, approaching your lender for support, or consolidating debts.
6. Build emergency savings
Aim to build up enough savings to cover at least 3 months of essential outgoings, in case of emergency.
7. Beware of scams and fraud
Online financial fraud is on the rise, so take steps to avoid becoming a victim of cybercrime. Remember the saying if something sounds too good to be true then it probably is.
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