Have you ever stopped to think about the similarity between financial and physical health care? When something doesn't go well, you have to change some habits, create new ones, and do constant monitoring or remedy — when necessary.
Just like in physical health, when your financial health is not going well, other areas are also impacted. The concern about the lack of money can generate anxiety, stress, lower productivity at work, and family conflicts that result in a decline in our quality of life.
If you face a moment like this or have already gone through it and don't want to repeat this scenario anymore, it's time to take care of your financial health. In this text, you will see how to do this in practice!
Financial health is the balance between how much you earn and how you use your money. This is possible when you cultivate a standard of living that fits your reality, that is, without spending more than your budget.
Those who are in good financial health manage to organize themselves for future plans, such as taking a trip, moving to another city, buying a car, opening a business, etc.
The economic reality of a city or a country can affect someone's financial health, but we too have a responsibility to manage our finances.
That's why it's so important to find the balance between the money that comes in and the money that is spent monthly.
Financial health is like a scale. On one side is the inflow of money and on the other side are expenses.
The middle way, of balance, is precisely not to spend all the money you earn. Part of the money you receive needs to be applied, so the balance of your financial health doesn't stand still.
In fact, it moves with a little more weight to one side or the other. For example, when you use part of your money to save more and build an emergency reserve.
When there is an unforeseen event, the expense will force the balance to move again. But, if you have financial stability, control your finances, and save a monthly amount, you will be able to complete the money you used from that reserve.
Think about this healthy movement to carry out bigger plans, which will need more financial preparation time. So, when you put these goals into practice, they won't affect your other expenses or your quality of life.
When we seek financial stability, some behaviors can hinder this achievement. Commonly harmful habits are:
- Not knowing how much you earn net per month, what is the exact amount that falls into the account after deducting taxes and fees;
- Having no idea how much you're spending over the month;
- Thinking that the credit card is an extension of the salary;
- Have several credit cards;
- Does not accept giving up comfort and consumption habits to make some money left;
- At the time of the squeeze, resort to the overdraft or enter the credit card revolving;
- Having late bills and not paying agreements.
It's not easy to give up some pleasures, but when the financial situation is not going well, this is a fundamental step. Changes can be like bitter medicine which, in this case, will improve your financial health and bring you more knowledge about your own money.
Financial health is in everyday life, in practice. For this reason, we have listed below which habits you should have in order for money to help you improve your life:
This is an essential activity for anyone who wants to have more peace of mind when it comes to money and financial stability. Create a spreadsheet or use an app to write down your monthly income and expenses.
By knowing how much you earn and how much you spend, on average, per month, you can set a spending ceiling for leisure activities, for example. Also, you can start the habit of saving and preparing for bigger expenses throughout the year.
Watch where the money goes. Talk to your family and see what expenses were above average and evaluate what you can reduce or cut, especially what you don't use, like a gym membership or a streaming service.
Financial health does not prevent you from having your leisure expenses, such as restaurants, tours and trips. You and your family deserve to have these moments, but they can be planned so they don't turn into a pocket nightmare!
Understanding which expenses can be minimized is an important step towards the well-being of your financial health.
If you have issues, the first step is to resolve them. Negotiate your debts with installments that fit your pocket and, at the same time, avoid expenses that could lead to more debt.
Installments with high-interest rates can be a villain to your financial health. Before buying something, think carefully about whether you need to make the purchase now or whether you can wait, if you can't afford it at once.
To achieve our goals, it is necessary to prepare financially for them.
List your goals and those of your family and get organized to direct part of the value you keep for them. In addition, these goals end up serving as an incentive to have healthier financial habits.
Have a financial reserve of six to 12 months of your cost of living. If you lose your job or have an unforeseen event, these resources will ensure the well-being of your financial health.
After the unforeseen event, it is important that you try to cover the value of this reserve again, in order to maintain your financial security stable.
