Lots of people think about physical health as being important. They think about mental health as being necessary. But a third pillar that should go along with that is that people need to be financially healthy. And financial health isn’t as hard as most people think. You don’t have to be rich to be financially fit. You just need to make the right decisions with your money.
So how do you go about doing this? First, you need to pay special attention to your savings account. Second, you need to know when and why to invest. Third, you need to do everything possible to stay out of credit card debt. And finally, you need to learn how to budget early in your timeline. If you follow those four simple pieces of advice, you should have no problem becoming financially healthy and then staying that way through the majority of your life.
Your Savings Account
It’s never too early to open a savings account. Even before you have a job, you can put in any loose cash that friends or family give to you, even if it’s just as an exercise. You need to get used to stashing away a percentage of your income. This very simple habit will create great opportunities for you as far as financial health goes later in life.
When and Why To Invest
It’s crucially important that you know when and why to invest your money. Even if you feel like you don’t have a lot of extra, knowing that you’re responsible enough to invest is very important for your peace of mind and your pocketbook. If you do have extra money, you could consider buying an investment property as part of your eventual portfolio. However, something as simple as investing in your 401K plan can be one of the smartest decisions that you make earlier in life.
Staying Out of Credit Debt
Now, how are you with credit? Have you gotten yourself into credit card debt and found that it’s challenging to come out of it? Lots of people have that issue. Your best bet is to understand financial systems early so that you have good credit card habits from the very first one that you get. Teenagers who get a credit card before they know how to use it will often end up having severe issues before they understand that those troubles will compound as they get older.
Learning to Budget
When people learn how to budget, they wonder why they didn’t attempt to do it sooner. Especially with the new free applications that you can download on your phone, there’s no excuse for not putting yourself on a budget. Every day, simply look at your overall bank statements and cash flow and make good decisions based on what you have. It really is that easy.