LOS ANGELES, January 25, 2022 (Newswire.com) - iQuanti: Financial wellness is a huge aspect of overall wellbeing and happiness. But unfortunately, many people aren't aware of what it takes to become financially well. Luckily, if you're willing to put in time and effort to learn, improving financial wellness can be easy and maybe even a little fun. So, if you're ready to turn around your financial life, here's how to improve your financial wellness.
What is financial wellness?
Financial wellness is your ability to make sound financial decisions. And since personal finance isn't typically taught in school, your financial wellness is built through your own education and life experiences. It consists of broad financial ideas like saving, budgeting, investing, and planning for retirement, along with your ability to implement them in daily life.
Ways to improve financial wellness
If you're tired of living paycheck to paycheck and are ready to get on the path to financial wellness, here are a few things you can do:
- Set realistic and achievable financial goals. Great goals can clear the path toward where you want to be. But it's important to set realistic goals. If you have $25,000 in debt, becoming a debt-free millionaire in two years is likely out of the question. But becoming debt-free isn't. Look at your current financial situation, including debt and income, then decide what your picture of financial health five or 10 years down the line looks like.
- Establish an emergency fund. An emergency fund should be an early goal in every financial plan. That's because it acts as a buffer between you and what life throws your way. With a small emergency fund, you may be able to cover a minor car or home repair without having to take on debt. Your end goal should be to save three to six months of living expenses in your emergency fund, but even a few hundred dollars is an excellent place to start.
- Begin to track your credit report and score. Building credit is an integral part of your financial health. So, the logical place to start is by reviewing your report and current score. You can check your credit report for free, review how your credit score is calculated, and create a plan to boost your score. That may mean committing to making on-time loan payments, taking out a new line of credit or disputing errors on your report.
- Find a source for ongoing education. There are plenty of online courses and in-person seminars that teach people about personal finance. But there is also free material in the form of blogs, podcasts, and library books. Figure out what medium resonates with your learning style, then commit to tackling financial education regularly. That may be one book a month or listening to one podcast a week. Whatever you decide, stick with it for a set period to make the most of your learning.
What to do if you get kicked off track
Sometimes life happens while you're on the path to financial wellness. Unexpected emergencies crop up, and that may mean you need access to money now. If this happens, considering a loan option like a cash advance, installment loan or title loan may make sense.
Depending on your current financial situation, including credit score and access to collateral, one of these loan types may work for you. With a steady paycheck, you may be able to qualify for a short-term cash advance that can provide quick funds until your upcoming payday. An installment loan may work for those that want a larger sum of money that they can pay back in predictable monthly payments. And if you have access to your car's clean title, a title loan may make sense as a short-term way to access funds while still driving your car.
If you need to take out a loan, be sure to practice good financial wellness and pay it off on the agreed-upon terms. Doing so means you'll have access to the money you need without getting hit with extra fees or interest charges.
The bottom line
Building financial wellness is a lifetime process. But there are steps you can take today to improve it. Be sure to set financial goals, set up an emergency fund, track your credit report and credit score, and find ways to educate yourself. If you get knocked off track, know loan options like cash advances, installment loans, and title loans are ready to support you in the short term. Then, once you've repaid your loan, you can step right back on your path to continuing toward financial wellness.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
Source: iQuanti, Inc.