Managing your Money Right
Section 2
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Your finances and the decisions you make about them will change over time and are different from one person to the next and from one generation to the other. Still, some broad guidelines may help us get a handle on the state of our financial health and wellness. Money can be a deeply personal subject, and there are no one-size fits all rules regarding money but for this get healthy tip we share with you some gathered general tips and steps that will work well for most people.
As you strive to gain comfort with your financial wellness state this will involve doing activities towards having a better understanding of your financial situation and taking care of it in such a way that you are prepared for the financial changes that will occur throughout your life. To be financially well you are required to maintain a healthy balance and and be comfortable with where your money is coming from as well as where it is going. To attain a healthy state with respect to your finances, requires that you appropriately plan and budget for each stage of your life’s financial needs, especially with respect to your health needs as you age - because with time it is the norm that your ratio of disposable income to expenses, significantly lessens.
Here are the key
19 action steps
to go through on
your checklist
to being financially fit,
well and healthy
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1. Pledge to change
2. Know the red flags
3. Get organized
4. Set SMARTER plans
5. Tier your goals
6. Track your spend
7. Create a budget
8. Reduce spending
9. Know your net worth
10. Pay down your debt
11. Manage credit cards
12. Start a savings plan
13. Manage major items
14. Protect your assets
19 steps to optimal financial health and wellness
Achieving Lifelong
Financial Fitness
Financial Health or
Financial Wellness
Your finances and the decisions you make about them change over time and are different from your neighbor’s, your boss’, or your parents’. Still, some broad guidelines may help you get a handle on your financial plans.
Your Guidelines
For mortgages, lenders expect your payments to amount to no more than 28% of your monthly gross income (income before taxes, Social Security, and other deductions). Another method says that your PITI--the phrase for principal, interest, property taxes and insurance--plus your total long-term debt (say, for car payments, college loans, installment payments) should not exceed 36% of your gross income.
How much should you be saving? The conventional wisdom is to accumulate three to six months’ take-home pay (income after taxes, Social Security, and other deductions) in a liquid savings vehicle. That can take time to build up, and you may need to raid your account even while you’re adding to it. Still, if you consistently put aside 5% of your take-home pay, using payroll deduction, you’ll reach your goal.
For long-term retirement savings, at minimum put a percentage into your 401(k) that equals what your employer will match. Anything less and you’re actually giving up free money. Ideally, contribute the maximum your employer allows, typically 15%, into your 401(k). Can’t swing that much while you’re saving for your child’s future education expenses? Keep this in mind: You can borrow to meet higher education expenses, but you can’t borrow for retirement expenses.
15. Secure your future
16. The true cost of debt
17. Get tax advice
18. Financial checkups
19. Give!
Support is often Free
from one person to the other as well as from one generation to the next. Still, there are some broad guidelines that should help everyone get a handle on their state of financial health and wellness. For this Get Healthy Tip we will share with you our best gathered general tips and steps for attaining your best level of financial fitness yet.
Financial wellness involves doing activities that provide you with a better understanding of your financial situation and how to take care of it in such a way that you are prepared for the financial changes that will occur throughout your life. To be financially well you are required to maintain a healthy balance between and be comfortable with where your money is coming from as well as where it is going. Attaining a healthy state with respect to your finances, requires that you appropriately plan and budget for each stage of your life’s financial needs, ....
with respect to your health needs as you age - because with time it is the norm that your ratio of disposable income to expenses, significantly lessens.