3 ways to improve your Financial Wellness
Financial issues can be one of the prime reasons which lead to a less than happy life. It can be caused by a significant debt burden, not having enough savings, or enough protection in case of unexpected financial emergencies.
Studies have shown that when a family or an individual goes through financial issues, it can lead to serious issues for the individual from a health perspective and their ability to thrive as a human being.
It can also lead to serious issues with family members and loved ones and can have a domino effect on each and every member of the household. Imagine if you have to downgrade the lifestyle of your family overnight, what kind of effect that will have on your relationships!
The pandemic has shown us that these instances are real and most of us have come across people who are finding the situation extremely difficult to deal with.
Here are a few simple steps you can take
1. Have a budget & stick to it
While most people know that budgeting is important, it takes discipline to stick to it. One trick that works for me is to get the unavoidable expenses like utilities, fees, taxes, and insurance payments out of the way right at the beginning of the month. That way, you should actually take your income as the amount that is left after all of these to use on discretionary spending.
2. Build an emergency fund
My thumb rule is that you should have anywhere between 6 months to a year’s worth of expenses saved in the bank or in a money market fund, which can be accessed without notice and inform your family about the same.
There are 2 things I have observed, people give in to peer pressure and end up living a lifestyle that is beyond their means and to keep up with #socialtrends. The other is when people invest after listening to the commentary on TV or by doing something they don’t understand because their friend or colleague is doing the same. This rarely leads to the desired results.
If you feel that you are ready to take the next step to explore a holistic financial plan, please feel free to reach out to Abhishek Datta, one of the leading Financial Advisors in Dubai. He will assist you to create an effective financial plan for yourself, and a secure future without compromising much on your present. To know more, visit https://abhishek-datta.com/ or send an email at abhishekdattafinancialadvisor@gmail.com or call +971 55 3539327
