9 Ways to Establish a Fit and Wealthy Financial Life

Are you worried about your finances? As your financial obligations rise, do you have enough money to pay them? People are stressed out of their minds about this stuff. We see it every day. However, you can establish a healthy financial life and build wealth by following what we do here at The Stealthy Rich. Financial planning is essential, and if you have not yet started to plan, you should start by building a financially fit and healthy life.

Here are some ways to start winning at your finances.

1. Track Your Money

You should make sure your money coming in is higher than the money going out. As Peter Drucker said, “What gets measured, gets managed.” If you don’t know what you are earning and spending, then the rest of these steps aren’t going to do anything for you. Use tools like Mint to make sure you have full visibility into all the ins and outs in your life.

2. Follow a Budget

You need to follow a budget so that you can easily monitor your pennies and know where they’re going. If you lose track of your money, very soon you’ll see that money is controlling you rather than you controlling your money. Make a budget that eliminates all the unnecessary expenses and tries to distinguish between wants and needs so that you can prioritize your expenses. This process is how you get ahead in the long run.

3. Start Saving Money

There is no shortcut to saving money. Unless you start saving at least a small portion of your income, you’ll be in trouble. You should aim to save at least 20% of what you make each month so that you’re able to build an emergency fund that can be used when times get tough. We recommend Ally Savings or Discover Savings. These are online accounts that pay high rates and are easy to use.

4. Stop Spending on Junk

If you’re an impulsive shopper, recognize your issue and determine if all that stuff you are buying truly brings you joy. Does it? Know what things you need and what you don’t. As Ramit Sethi, author of I Will Teach You To Be Rich says, “Spend extravagantly on the stuff you love and cut costs mercilessly you don’t.”

5. Manage your Credit Cards

If you are carrying high-interest credit card balances, then you need to figure out how to fix this! Consider a balance transfer to a credit card that offers low-interest rates. Or, try to find out a credit card that doesn’t charge a balance transfer fee. Don’t miss any monthly payment to avoid unnecessary charges. Use credit cards to your advantage! Maximize points and rewards, make the credit card companies pay you to use their products.

6. Repay Your Other Debts (Highest Interest Rate First)

You may not be able to pay off your entire personal debts (personal debts, student loan debts) within a few months, but you should be making extra payments towards your debts to accelerate the payoff. Save money every month to make some additional payments toward your highest-interest debts, and soon they will start to disappear as you pay them off, and your cash flow will increase.

7. Start Funding Your Retirement Accounts

If you don’t have any retirement fund yet, then open an account and start funding. If your workplace has a 401 (k) plan or an IRA, then take advantage of them to get the tax benefit and any employer match as well.

8. Save More Money Than the Previous Year

Each year try to increase your savings rate. For example, If you are saving 10% of your income currently,  then try to increase your savings percentage this year.  Allow the money to grow and keep saving money for a longer time. Before you know it, you’ll have a nice financial cushion.

9. Set Goals

Setting financial goals is essential but set realistic and achievable goals. Do you want to be a millionaire? There is no such shortcut to becoming wealthy. You must earn money and save money with determination. Research well and read more to invest your money for the best return. Thus, you can ensure your good personal financial health in the future.

Lastly, don’t feel demotivated about your poor financial condition. You are not alone; many people like you don’t know where to start. Most of them are trying to stay on top of their finances just like you. So, instead of panicking, you should concentrate more on taking care of your finances to see good results in the coming years.