Financial health is the state of your personal economic well-being; it includes your savings, retirement, income, and expenses. A healthy financial life is just as important as your physical well-being, it dictates your happiness, your stability, and lays the foundation for your future. Having a healthy financial life helps to eliminate stress.
There are several factors in our lives that contribute to stress debt is one such source that causes stress levels to rise. Here are a few tips of what you can do to lower those levels and start on a plan of action:
- Take control of your finances
- Create a budget
- Make a list of all your debt regardless of the amount
- Add the totals, know it, and use it as a motivator
- Only you can decide which debt is best to eliminate first
- Create a debt elimination plan
- Talk to creditors and ask for the lowest interest rate you qualify for
- Factor your debt payments into your budget
- Pay more than the minimum balance
- After you eliminate your first debt add that payment to the next debt in line
A debt elimination plan can take many forms:
- Debt Consolidation
- Lowest to highest interest rate
- Highest to lowest interest rate
- Smallest to largest debt
- Largest to Smallest debt
- Highest emotional impact
- Lowest emotional impact
Choose the plan that is best for your financial and emotional well-being and stick to it. At the end of the journey it will be one of the best investments you ever made in yourself.