Today many people are more conscious about their health and overall well-being. You even hear phrases like “health and wealth” used regularly now which is very true. While it is important to take care of our physical health, what about your actual monetary health? Is it in the best shape possible?
There are three areas of finance that one must be actively involved in to make the grade. If you currently do all three, than kudos to you, you are well on your way to securing a stable future. For those of you who may be a step behind, there is nothing to fear. The time to get your finances in order is today.
This is the first and most crucial aspect of financial wellness. The reason is because budgeting is equivalent to the ABCs of finance. It is the most basic step and the foundation of all things money. If you do not have a budget in place there leaves no reason to believe one allocate funds to savings and investing *hint, hint. A budget serves as a roadmap to your money. If you do not know where your money is going your finances are sure to crash.
Next to budgeting this is the single most important thing that must be done with your capital. I like to think of savings as the profit you put away after a long week or two or work. If a business does not make a profit than they can cannot operate therefore the business will soon cease to exist. You must begin to think of your life in the same vein. You need profit or savings to sustain yourself over the long haul. Most big ticket purchases like cars, homes, education and even weddings will need to be financed with some type of savings. Without savings you will surely not get very far over the course of your lifetime.