Interested in increasing your financial health? Forbes.com has some solid suggestions to help you down that road.
Do you know what your net worth is? To figure this out, you'll need to determine the difference between what money is going out, and what money is coming in along with your assets.
This amount will change as time goes on, so you'll need to keep track of this on an ongoing basis. Calculate your net worth at least once a year.
Once you know your present net worth, you can move on to working out a budget, both monthly and yearly.
Instead of blindly making expenditures hoping for the best, this will help you plan for your spending, and hopefully to also cut out some expenses.
You'll then be better able to plan for the things you want in future, as well as have funds for emergencies.
To help plan a budget, keep track of your bank and credit card statements for three months or more. Be sensible about credit. Make payments on time, and be disciplined about taking on more credit card debt.
Paying down high interest debt will have long term benefits. Look into refinancing and renegotiating interest rates. When one debt is taken care of, don't reduce the amount you're putting to paying off debt.
Instead continue to apply those amounts to other debts, starting with the one that has the highest rate of interest.
Insurances of various types can be a big outgo, but don't skimp on them, or underestimate the amounts. Do the research to make sure the coverage you have for home, car, health and other insurances are realistic, and fit your needs adequately.
After you determine your expenses you'll know what you have left over to work with. This will enable you to be realistic about what you can save, invest, and spend safely.
Being able to discern the difference between what you want and what you need will allow you to get a healthier handle on your finances.
You need to have enough money to pay for shelter, food, clothing, transportation and health care, for instance. These are matters of survival. After you've allocated funds for these things, you can better decide which things you want are attainable.