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Financially Fit: 8 Smart Ways to Improve Your Financial Health

May 06, 2019

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Up to 85 percent of Americans say that they feel stressed about money.

How do you get fit and healthy? You do regular exercise and eat a balanced diet.

It's the same with financial health. Following proven tactics is the key to financial success.

Do you want to know the top ways to get your personal finances in order? Check out our ideas below!

1. Make Your Savings Automatic

Roughly 60 percent of Americans don't even have enough savings to cover a $1,000 emergency.

That's because people save whatever they have left at the end of the month. This is the wrong way to go about saving money for the future.

You should automatically direct your income into a savings account. When you prioritize your savings before your other expenses, you learn to live within your means.

The median household income in the U.S. is around $4,700 per month. If you decide that you want to save around $500 per month, put this away as soon as you get paid rather than at the end of the month.

2. Eliminate Wasteful Expenses

Around 67% of gym memberships go unused.

It's great that your new year's resolution was to get fit and healthy. But, what about the health of your finances?

This kind of wasted expenses needs to be eliminated.

Do you only watch Netflix TV shows but still have cable TV? You need to put a stop to this.

3. Sell Your Stuff Online

We all have possessions that we no longer use. It's easy to collect things that you don't want anymore.

But don't leave them to clutter up your home. Sell your stuff to make extra money instead.

If you want financial health, then you cannot be a hoarder at the same time. Sometimes, you've got to be tough with yourself.

When was the last time you wore that cocktail dress? If the answer is over a year, sell it on Craigslist!

Have you used that iPod in the past six months? Make money out of it by selling it on Facebook.

4. Budgeting Can Set You Free

Only 4 1 percent of Americans have a budget.

Maybe you think that having a budget as always saying "no" to spending money. However, that's totally the wrong way to think about it.

Instead of thinking about it as "you can't have those jeans," Think of it as "you can go on vacation next month."

You don't have to impulse buy on a budget. You determine how much you want to spend on clothes, groceries, and vacations.

Then, you stick to it. You no longer have to feel guilty every time you spend money on things when you know you have enough.

5. Hire a Financial Advisor

You may think that hiring a financial advisor is only for the rich and famous, right?

If you want something done properly, you need to get an expert to help you. And yet, only 17 percent of Americans hire a financial advisor.

Just because you can invest in stocks and shares by yourself, it doesn't mean you should do it.

Don't depend on a financial advisor exclusively. You also need to do your homework as well.

6. Improve Your Credit Score

You need to make sure you've got a good credit score. This is determined by your record with credit cards, loan repayments, and other factors.

If you're in debt, this damages your credit score. If you regularly fail to pay off credit card debts, you could also be causing havoc with your credit score.

However, the solution is not to avoid credit cards altogether. You need to learn how to use a credit card responsibly.

There are also dozens of challenges if you don't have a credit score at all. That's the case for up to 45 million Americans without a credit score.

By using a credit card wisely and regularly paying your bills on time, you'll gradually build up your credit score.

Then, next time you want to take out a loan, such as a mortgage, lenders will look positively on your record. You can learn more about how to improve your credit score here.

7. Save for Your Retirement

Savings shouldn't only be for an upcoming vacation or for a home of your own.

You need to think long-term. Around one-third of Americans have under $5,000 saved for retirement.

Remember, you never know when you're going need to depend on your savings when you can't work anymore.

Stop thinking about you in the future as a different person. Next time you have to decide to put away your money for retirement or spend it now, imagine yourself in your seventies.

This may cause you to make a totally different decision if you only consider the here and now.

8. Get a Side-Hustle

Having a single income stream can never be reliable. You never know when you're going to be cut loose.

You can protect yourself with a side-hustle. Over 37 percent of Americans regularly engage with a side-hustle at the same time as a day job.

This can also be a way to monetize your hobby or take advantage of an opportunity to earn extra cash.

Remember the saying, "don't put all your eggs in one basket." This is helpful advice when it comes to financial health.

How to Achieve Financial Health?

Now you know how to keep your finances fit and healthy. From getting a side-hustle to creating a budget, go on a journey toward financial health.

Do you want to watch videos on how to manage your personal finances? Learn more when you check out our finance videos.