A Better Outlook: 5 Tips for Maintaining a Healthy Financial Lifestyle

Posted June 7, 2020 by in Lifestyle
woman sitting on lawn with credit card

Keeping your finances in order is more important than ever before. Many companies are no longer offering employees retirement benefits or pensions. Because of this, individuals need to take care of their finances for the present and the future. There are plenty of experts and professionals who understand what it takes to help people with their finances, like Lawalways.

These are five helpful tips you can use today to begin working toward a healthy financial lifestyle:

paying by credit card

Start Retirement Planning Early

One of the best things you can do is to begin planning for the future as soon as possible. It is never too late to start saving for the future. Before you begin, see if your employer has a matching policy. Some will match 401k investments, so invest as much as your employer will match.

Then, save. Save. Save. Find checking accounts that pay substantial interest and find other safe places to put your money. In the long run, it will pay off. 

Know Your Interest Rates

Pay close attention to every interest rate you have. Know how much you are earning on your money, and know how much you are paying on your debts. Some creditors will negotiate interest rates so you can try to pay off your debts faster.

Watch your interest-bearing accounts, because some banks will discontinue programs that pay decent interest. If this is the case, move your money elsewhere so you can continue to earn money on your money. 

Get Out Of Debt

One of the best ways to save money is to get out of debt. As you get out of debt, put the money you were paying on your debt into your savings or retirement. Interest compounds in both ways, for saving and spending. So, if you can get out of debt, you will have more money for the things you want later, and you will want things later – especially when you are ready to go into retirement. 

Only Spend Cash

Another important thing that will help you maintain a healthy financial lifestyle is to try to only spend cash. When you only spend cash, you can’t overspend. You cannot go into debt, and you will not have to pay people interest to borrow money from them. There are some items that you might have to get a loan for—like a home, but other items are better purchased with cash.

You can even do that with a car, by purchasing a used one. Cars rarely appreciate in value, so the only time you should consider buying a car with a loan is if the interest rate is zero, or close to it.

Work With a Professional

Financial planning is not easy. Fortunately, there are professionals who can help. They spend their lives studying the markets, so they know the best places to put your money.

They can help you with setting a budget and moving your money when the opportunity arises and when markets take unexpected or expected turns.