Plan Performance Direct

THE Wealthier + Wiser Blog

Helping you better understand your money so you can reach your goals

Staying proactive with your finances

Does thinking about finances overwhelm you? Is it hard to find quality advice amidst all the noise modern life has? The pressure from knowing when to upgrade your iPhone and when to dine in rather than out, all impacts the stress an individual may feel. Social media also plays a role in society’s finances. The façade to portray a certain lifestyle can be emotional and physically stressful on a person’s health, especially when they can’t financially support it. All this pressure can weigh heavily on our clients purchasing decisions and financial happiness.

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These choices not only impact your finances today, but potentially the rest of your life. The best time to learn good spending and financial habits is now – and we are happy to bring you a few pieces of advice given our years of experience and expertise in the field.

Here are some of our best ideas for you to learn and share with those in your life.

  • Financial situations don’t just affect our bank accounts, retirement savings, and credit scores. They can affect our physical health and personal relationships. Clearly frame how important the topic of financial stability is with your family or significant other, and how closely related it can be to your personal success, health, and well-being.
  • Debt woes can flood a person’s mind with overbearing emotions, making your everyday life exasperating. But they are common, and you aren’t alone.
  • Proactively manage your money by making great decisions upfront. Many people will make financial decisions and then look backward in regret. Before you make a purchase on something you “want” to try and imagine the long-term outcome of that purchase. If you cannot envision a long-term benefit, maybe this isn’t the right time for that purchase!
  • Staying employed is an excellent way to mitigate your debt burden and help plan for your long-term savings objectives. If you think about it, you usually don’t spend money while you are working, and a working environment gives you a place to hopefully network positively with coworkers. So, stay actively employed and think about what you can do to add more value to your work to help you earn more compensation.
  • Buy only what you can afford. Just because you have $2,000 in your bank account doesn’t mean you have $2,000. Be sure to have a savings and investment goal to stick to. If you can view the money in your account as a financial safety net instead of the freedom to acquire something else, this perspective will help you save and collect extra money to secure your finances.
  • Making payments on time alleviates the stresses of managing your finances throughout the year. Fees for payments can increase if you miss a deadline. If you couldn’t afford the first payment that late fee will only add to your stress and debt. Plus, feel free to reach out and contact your debtors to see if you can renegotiate terms. It won’t work for every person or place you owe money to, but it could make a difference by proactively reaching out.
  • Track your spending habits and be financially responsible enough to use a credit card that earns points and/or cashback. This will require spending discipline to not overdo it each month. Write down your financial necessities versus financial wants. By sticking to your financial needs, you can best plan and save for your financial wants. When you earn a high credit score for diligent spending, you won’t regret it.

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Financial stress can manifest in a multitude of ways on your health and in your life. There are many resources that can help you learn to save. But, it all starts with you and if you’re ready to make that decision. The stress and anxiety you feel shouldn’t last a lifetime, so don’t let the debt pile up. In the end, it comes down to common sense. For instance, people have gotten so used to swiping their credit cards that they exempt themselves from their debt. Treating yourself can be rewarding especially for mental health or when it comes to relationships. But, at some point, you must insinuate self-discipline on your finances.

 

Jordynn Robinson