In the last five years, millennials (ages 24 to 39) have seen the largest increase in debt even though Gen X (ages 40 to 55) have the largest amount of debt by age group.
From millennials to the silent generation, every age group suffers from debt over $40,000. Debt has become a normalized piece of the American lifestyle as borrowing money is part of many long-term financial plans.
However, it’s easy to struggle with debt and fall into a dangerous pattern. Keep reading to learn a few ways to boost financial wellness and decrease your debts.
Table of Contents
Create a Budget
The simplest way to boost your financial wellness is by creating a budget that fits your lifestyle. If you want to increase your finances, you have to make some life changes that a budget can help you follow.
Different budgeting methods can work for your personality. If you need some extra money for yourself, the 50/30/20 budget is one of the better options.
Create a Savings Account
To relieve stress, you can create a savings account for when unexpected expenses come up. Having an emergency fund can help you decrease debt in the long run.
After paying off your debts and having an emergency fund, you can continue to use your savings account to put money away for retirement or other major life decisions.
Negotiate Your Bills
Not many know that you can improve your financial wellness by negotiating with recurring service providers. Negotiating your monthly cable or storage bills can keep more cash in the bank to pay off debts.
With the extra money you have, you can pay off any outstanding balances.
Ask for a Raise
This option won’t work for everyone, but if you are overdue for a raise, there is no harm in asking for one. Make sure you are making a salary that matches what someone with your experience should earn.
If you can’t get a raise, consider taking on a side hustle or finding part-time work. It isn’t the most ideal scenario for people to use their free time to do more work, but it can help in dire times.
Reach Out to Professionals
Various professionals can help you better manage your finances. For example, you can hire a debt management company or credit repair company for help.
Financial experts will get a better idea of your situation to create a plan that is unique to you.
Buying things might seem counter-intuitive to giving your financial wellness a boost, but purchasing insurance is necessary to avoid financial ruin.
Health insurance and renters insurance should be at the top of your list if you don’t already have policies.
Improve Your Financial Wellness Now!
Boosting your financial wellness won’t happen overnight, but there are steps you can take now to begin your journey. If you have debts, you’ll want to pay them off as soon as possible to increase your credit score and lower interest.
When you have a budget, savings account, and negotiate your bills, you’ll have extra money to decrease your debt ratio faster. Asking for a raise and reaching out to professionals can help if you still run into issues.
For more personal finance advice, check out the other posts on our blog.