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2 September 2019 | by George Iacovou

6 Best Practices to Living a Financially Healthy Lifestyle

Financial independence gives us the opportunity to live the way we want. Here are 6 simple tips that can help you achieve a financially healthy lifestyle

  • Create A Budget and Stick To It
    To achieve financial health, it is necessary to create a budget to keep you on track of your financials and saving enough for uncertain times. Budgeting is simply managing how you spend your money. This is to ensure that you are spending less than you are earning and setting aside for your future. Creating a spending plan will help you ensure that you have enough money for the things you need and the things that matter to you.
  • Keep Track Of Your Expenses
    Managing your expenses is the first step to being in control of your finances. Tracking your spending creates financial awareness that could help you identify where your money goes and how you spend it. Setting limits on expenses and controlling overspending will allow you to begin to build wealth and go after the things that you want out of life.
  • Pay Off Credit Card Bills On Time
    Sending your credit card payment on time can help you avoid unnecessary debts and keep your account in good standing. Your credit score can also affect interest rates. Lenders consider your score an indicator of how likely you are to repay your mortgage. A higher score increases a lender’s confidence that you will make payments on time and may help you qualify for lower mortgage interest rates and fees. Maintaining a good credit history is one of the main bases of good financial health.
  • Establish An Emergency Fund
    To ensure the financial future for a family, an emergency fund is necessary. An emergency savings fund can help individuals look forward to the future without worrying about being unprepared for the unexpected surprises life throws unto you. Worrying of not being financially secure for the future causes unnecessary stress. Hence, a savings fund can help eliminate the stress and allow an individual to live a more peaceful and comfortable life.
  • Make your First Investment Today
    The best time to invest was a decade ago. The next best time is now! Starting early means your money will earn interests longer, benefitting from market gains. Investing is essential in reaching your financial goals in life. Knowing that you have money set aside and earning for you helps you live life with less worries.
  • Plan For Your Retirement Now
    At retirement, individuals will want to have enough savings to live comfortably. Saving for retirement also ensures you are well taken care of. The cost of long-term care can be expensive and it should be included in the cost of your retirement; therefore, you should start saving now. Social security benefits are great, but they will not be enough to cover all of one’s retirement living expenses. Since one cannot rely on social security benefits to survive, one needs to start saving for retirement.

Unless otherwise expressly stated to the contrary, this website is not designed for the purpose of providing personal financial or investment advice. Information provided does not take into account your particular investment objectives, financial situation or investment needs.

You should assess whether the information on this website is appropriate to your particular investment objectives, financial situation and investment needs. You should do this before making an investment decision on the basis of the information on this website. You can either make this assessment yourself or seek the assistance of an adviser.

Unless otherwise expressly stated to the contrary, the information on this website is not a recommendation or a statement of opinion to make a decision about a financial product or a class of financial products or to invest in any investments, securities or financial products offered by any product issuer, including AMP Limited (ABN 49 079 354 519) (“AMP”) or a member of the AMP group of companies.

As always if you would like more information or want to book a complementary goals meeting with one of our advisers, click the book now button or download our free budget tracker on the link below to get you started.