3 Key Ways to Improve Your Financial Health

3 Key Ways to Improve Your Financial Health

| May 03, 2020

3 Key Ways to Improve Your Financial Health

Less than one in three Americans are considered "financially healthy" according to the Financial Health Network, who conducted a study late last year—when the economy was still booming and and well before COVID-19 put many Americans' incomes at risk. 

If the recent state of the world has caused you to reevaluate your financial health, we want to help you build yourself a solid financial foundation.

The three foundations for improving your financial health are:

1. Determine where you're starting from. It is important to understand not only your starting point financially, but what your money habits have been up until this point. Read more on how to develop healthy habits and an abundant mindset.

2. Tell your money where to go. When it comes to money, we have control over what we do with it. Every dollar coming in should have a purpose. Is it going into your savings, being invested, or paying bills?

3. Start spending less than you earn. Many people have more money going out than what's actually coming in leaving them drowning in debt. Take some time to look at how much money is coming in and how much is going out. Make a budget for your vital expenses—then begin cutting down in areas where you can. Here are some strategies to save money. 

If you want to change your financial health, you've got to change your mindset. You can't live life on your terms without paying attention to how you use your money. If you want to create good money habits, the best time to start is right now.