• Tue. Jan 18th, 2022

Improving Your Financial Health: Here’s How To Do It

Financial Health

Your financial health is just as important as your physical and mental health. But you knew that right?  Money affects almost every aspect of your life and can be the determining factor in many of your day-to-day decisions.

Being financially healthy isn’t just about how much money you have in the bank. It also encompasses your financial capability and how you feel about money or how money makes you feel.

Start by doing a self-check to determine your financial health. Look at where your accounts currently stand, including the statuses and balances. The balances in your accounts can be used to calculate your net worth, which is a numerical indicator of your overall financial health from an accounting standpoint.

Also consider your feelings and relationship with money, including the emotions you experience when someone brings up topics involving money. Then determine if you are a saver or spender. Understanding how you feel about your finances and why you have these feelings can help you improve your overall financial health along with these tips from the financial experts at kinly, a financial services company helping Black America build generational wealth.

 

Set Financial Goals

To improve your financial health, start by setting short-term, mid-term, and long-term financial S.M.A.R.T. (specific, measurable, achievable, relevant, time-bound) goals. S.M.A.R.T. goal setting can help you be more specific, provide a way to measure your progress, allow you to create a plan to make things more achievable, ensure your goals are in line with other objectives and provide deadlines, so your financial goals don’t get lost in the shuffle of day-to-day life.

Create a Money Plan

A money plan is a guide that details how you want to use your income monthly. This plan should consider the money you want to save and the money you want to spend. As you add your list of expenses, use this opportunity to review where your money is going and if your spending is in line with the financial goals you’ve set. This is also an opportunity to look for ways to reduce or eliminate spending so your money can be used for things that are important to you, like saving for a down payment on a car or home or purchasing an item from your wish list.

Expand Your Financial Knowledge

Explore ways to become more comfortable with money and take control of your financial future. Your relationship with money and how you feel about it make up your money story. Money stories involve emotions, beliefs, and experiences with money from childhood to adulthood. Start by spending 10-20 minutes each day exploring topics around money or personal finances to help build your knowledge base. You can do this by listening to podcasts, reading books, browsing reputable personal finance websites, or exploring financial education resources provided by your financial institution.