We talk about physical and mental health quite frequently in society, but what about financial health? Financial health describes what your financial state is. This includes emergency savings, retirement along with how much disposable income you have. Disposable income is important because to fuel the economy we need to purchase stuff. I wanted to share a couple things I’m doing to help me out financially.
Creating a Travel Savings Account
My financial adviser suggested to do this to help pay for travel without digging into my “emergency savings.” Plus if I know my money is directly going to fund my next trip, it gets me more excited to stay in if I know I could fly somewhere new in the next couple of months. I’m using Ally and I opened a high yielding savings account to help accrue more interest. I’m looking forward to seeing this account grow and which trips I can personally fund out of this account.
Make all minimum payments on credit card debt
Before, I was throwing as much money as I possibly could to pay my credit card debt which led to me draining my checking account too easily. Instead I will be putting 15-20 dollars from each paycheck to my credit card. I narrowed down my credit card debt to around $100 which means I’m so close to paying it off.
Put anywhere between 10 – 20% in the emergency savings
I tried putting 20% of my paychecks in savings and find that’s not working with all of my bills I have to pay + having some discretionary funds to buy comics / books, go shopping or go out to eat. I’m playing around with how much to put in my savings so that I still have some left over fun money as well.
Create a Budget
I used Microsoft Excel to lay out all my bills for each month. This keeps me so organized and helped me cut some expenses I didn’t need. For example, I dropped off some of the virtual coaching I had been doing so this left me with an extra $80 a month. I also forgot about some of the extra random bills like car tabs once a year and my xbox live yearly subscription. This budget has helped me immensely into becoming organized with my paychecks.
I’m always looking for ways to save money and be financially smarter. So leave a comment below if you have any other tips / tricks with money.