7 Easy Steps to Be Financially Healthy

  • Published on: 14 Mar 2024
7 Easy Steps to Be Financially Healthy

Saving money with some planning is easy but being financially healthy involves more than that. It includes building funds for emergencies, investing for better growth, avoiding spending beyond your means and more. 

However, everyone has different goals and preferences. As such, there is no one-size-fits-all solution that answers the question of how to stay financially healthy. Nevertheless, there are some tips and tricks that can help you get there. Some of these are listed below:

Follow Monthly Budget

Budgeting your income and monthly expenses is the first step towards improving your financial health. There are numerous methods, of which 50 / 30 / 20 is one of the most widely followed. According to this method: 

  • 50% of your income is fixed for your needs, such as bills, rent EMI, grocery shopping, etc.
  • 30% of your income goes towards your wants, such as dining expenses, shopping, travel, entertainment, etc.
  • 20% of your monthly income is for savings and investments 

You can choose a different approach or adjust the ratios according to your income and expenses. This will help follow the budget easier and allow you to secure your financial well-being.

Increase Your Income

Rather than cutting back your costs to save more, you can work towards increasing your cash inflow. This will help you finance not just your needs but also your wants. To do this, you can: 

  • Ensure you’re being paid fairly at work
  • Ask for a raise from your employer
  • Start a side hustle
  • Create a passive income source

Create an Emergency Fund

This is among the most recommended methods to prioritise your financial future. Ideally, you should build a corpus that can cover your expenses for 2-3 months in case of income loss. You can easily start with a savings account and add to it regularly.

Also Read: Tips to Make Smart Financial Decisions

Monitor Your Credit Health

Poor credit score can limit your access to financial services, which can negatively affect your overall financial health. Given this, you must regularly track your creditworthiness and take the necessary steps to improve it. Some common reasons for a low score include:

  • Unpaid or late payment on credit card bills or EMIs 
  • Errors in the credit report
  • High credit utilisation ratio
  • Low credit limit 
  • Low credit history 
  • Too many credit cards, etc. 

Spend Wisely 

In the age of instant gratification, you may want to make purchases without thinking twice. However, you must resist the temptation to avoid unnecessary expenses and put the money towards better use. 

One way to ensure you do this is to track and analyse your spending habits. Also, remember that you can give in to your wants sometimes, but make sure you don’t overspend.

Reduce Your Debt

While thinking about savings and investments, you must also think about how you can lower your borrowings. This will help ensure you don’t end up using what you accumulate during repayment. If you have multiple loans, you can opt for a personal loan and consolidate your repayment to streamline payments, all while saving on interest. 

Invest Wisely 

Based on your income and financial obligations, you can start investing in any scheme that suits your goals. An ideal investment should help you accumulate the required corpus in a given period. You should also diversify your investment to mitigate the risks and protect your finances. 

Becoming financially healthy requires discipline and keeping close tabs on your spending habits. If you need funds to get started on your journey to secure your financial well-being, you can rely on the Fibe Online Personal Loan. You can get up to ₹5 lakhs at rates starting at just 2% per month for a flexible tenure of 3 to 36 months. This will help you pay in comfortable EMIs that meet your budget. 

The funding also comes with no end-use restrictions so you use it for investment, paying tuition, or any other goal. What’s more, you can also foreclose the loan without additional charges. Download the Personal Loan App or register on our website to start the application process with minimal requirements! 

FAQs on Financial Health

How can I have good financial health?

To be financially healthy, try these easy and simple tips:

  • Build an emergency fund
  • Avoid overspending 
  • Begin investments as per your goals
  • Avoid relying on credit unless necessary
  • Cut on unnecessary expenses 

What are ways to strengthen your financial future?

Here are some of the tips you can try: 

  • Budget your expenses
  • Pay your bills on time
  • Get insurance for yourself and your family 
  • Build emergency funds
  • Invest with your goal and finances in mind

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