Five ways to jump-start financial wellness

Simple changes in your spending habits can make a big impact on your overall financial health. Here are five things you can do that will start you off on the right track of your financial wellness journey.

1. Know what’s coming in, and where it goes.
This is all about the budget. First, you have to know how much money is coming in each month. If you have multiple sources of income or bonuses, tally them up and know your total. Next, list every expense you have and when it hits: monthly bills, rent or mortgage, quarterly haircuts, insurance, gym memberships, magazine subscriptions, groceries and gas, etc. You want to be sure that there is more coming in than going out.

2. Determine your real needs.
Go through your list of expenses and prioritize your needs over your wants. Identify opportunities to cut out “wants” like gym memberships, magazine subscriptions, or that daily Starbucks. For bigger “needs” like housing, consider more affordable options: another location, roommates, or renters. Have a monthly car payment? Shop for something you can buy outright, even if it isn’t as trendy as you’d like.

3. Renegotiate your terms.
Many cable and Internet providers are competing for your business. Make them earn it by negotiating your contract to beat the others. If you benefit from a promotional deal, mark on your calendar when it ends, and you can go back to the companies and negotiate a new contract with the current promotional carrot. That one phone call could save you hundreds of dollars over the course of a year.

Cable and Internet providers are competing for your business. Make them earn it by negotiating your contract to beat the others… That one phone call could save you hundreds of dollars.

4. Just say no!
Did you know that the average American can spend $324,000 in their lifetime on impulse buys? According to a poll conducted by Slickdeals, we average three impulse purchases a week, totalling $450 every month, $5,400 each year, and up to $324,000 over the course of a lifetime. Some of the many little purchases that can add up:

• 75% of respondents “buy the candy at the register before they checkout.”
• Nearly a third “impulsively buy food after passing a nearby restaurant.”
• 25% “buy a pair of shoes when they see them in the store.”

When you feel the urge to buy something without planning for it, consider whether it is something you need, or something you simply want.

5. Know that interest isn’t in your best interest.
If you’ve ever looked closely at your mortgage statement or car loan details, you’ll see that interest makes up a big part of your payment. Refinancing can help reduce your interest, and thereby your monthly bills. Also, try planning to make at least one additional principal payment each year: It will help you pay off your loan faster, and avoid more interest.

Try planning to make one additional principal payment each year: It will help you pay off your loan faster, and avoid more interest.

FOR MORE INSIGHT

On creating a budget
My new money goal worksheet (Consumer Financial Protection Bureau)
My spending rule to live by (Consumer Financial Protection Bureau)
Not sure how to handle your finances and student aid (grants, scholarships, loans, work-study) while you’re in school? (Office of Federal Student Aid)
The 8 best budgeting apps to download in 2018 (The Balance)
8 best personal finance apps (Investopedia)

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