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How To Strengthen Your Financial Health To Reach Your Next Milestones

stregthen financial health

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Strengthening your financial health will allow you to build your dream life and create opportunities. Whether you are just starting your financial journey or looking to improve your financial wellness, strengthening your financial health is a goal within reach.

 

When was the last time you considered your dream life? When did you stop to think, “I want to create that opportunity for myself?” Manifesting what you want is important. Spend time visualizing your dream life and the opportunities you want to create, and set a goal date for this next milestone.

 

You cannot take action on your next milestone unless you strengthen your financial health. Otherwise, you are constantly worried and stressed about money, which prevents you from building the capacity to think about the next steps.

 

Here are four steps to strengthen your financial health and reach your next milestone:

 

1. Build a savings

 

Savings is your number one priority. Your financial health is low because you do not have savings. You focus on paying off debt and neglect your savings, so you are forced to use your credit card again when an emergency happens. All the debt you paid is now accruing back.

 

Savings is your priority.

 

The fastest way to increase your savings is by increasing your income. Yes, you can cut expenses, but increasing your income allows you to save more. Start saving three to six months of your monthly expenses. This savings needs to be in a High-Yield Savings Account where you earn money to have your savings sitting there. You do not have to worry about losing money. It grows risk-free!

 

According to CNBC, 44% of Americans cannot cover a $1,000 emergency with cash. By saving at least $1,000, you will be ahead of so many! Building your savings will allow you to develop the capacity to start thinking about your next milestone versus being stuck constantly worrying about the bills coming up.

 

These savings will provide peace of mind and protect your financial health from setbacks.

 

2. Create a plan to manage your debt

 

Debt is keeping you stuck. You are in this cycle of paying off debt, emergencies happening, and accruing the debt back.

 

This is why savings are significant and priority number one. But I want to help you create a plan and manage your debt despite how big of a monster it feels.

 

Face and organize your debt as much as you may not want to. Part of the debt ruling your life is the unknown. You may have less debt than you think, so organizing your debt is important. Make a list of your debts from the lowest to the highest. Pay all minimum payments to each debt except the lowest debt and choose to send a little extra to that debt. Saving is your priority, but you can send more than the minimum payment to your lowest debt.

 

Trust your debt repayment plan to allow you to focus on building your savings. You are putting your oxygen mask on first. If any emergencies happen, guess what? You have your savings you can use, and the debt you paid off will finally not accrue back!

 

You will finally start progressing towards strengthening your financial health. Allow yourself to think further than just a month at a time. You will feel lighter; trust the process!

 

3. Have more fun

 

Having more fun allows you to pay off debt and save sustainably. This is the plan you need to start progressing in your financial goals. What fills up your cup? Do more of that!

 

Again, trust the plan of making savings your priority and managing your debt to start practicing putting on your oxygen mask.

 

Do not focus on hitting your numbers so soon that you forget to enjoy your daily life and friendships. Guess what else does not work? Going at 100 MPH and burning yourself out, then really craving a shopping spree or materialistic things because you miss feeling joy! What can end up happening is spending more than what you can afford, and you accrue your debt back.

 

Allow yourself to have fun!

 

Make a list of fun activities you like to do that range from inexpensive to expensive. For example, activities that start at $10 and go up to $100 or more. This way, you are helping your future self have fun, ensure that it is within budget, and have a variety to choose from that aren’t always expensive.

 

Allowing yourself to have fun ensures that you stay grounded and content and will help you stay focused on the savings and debt repayment plan.

 

4. Plan for your next milestone and always run the numbers

 

Running your numbers will answer many questions on your next financial milestone. You can be excited about the next steps versus feeling anxious about money, and you will have clarity on timing.

 

When planning your next milestone, consider it a birthday party. Think about everything you will need and create a budget. Get clear on the numbers and start saving for it. Ask yourself, is this a need, or is this a want? For example, if you are moving states, is hiring movers a need or a want? If you have back issues, it is more of a need than a want.

 

Add this milestone to a separate sinking fund to start saving for it. Your savings keep your financial health high. Protect it.

 

Remember, the journey to strengthening your financial health is a marathon, not a sprint. Start today and make steady progress towards your next financial milestone by putting on your oxygen mask and building the capacity to think beyond a month at a time.

 

When we work together:

 

  • I help you create a budget that works for you, and that is not restrictive
  • I help you set financial goals and create small milestones to reach your goal
  • I help you unpack your money wounds that are reflecting on how you feel and view money now

 

If this resonates with you, I invite you to work with me! I want to help you understand the emotions around money and how you can use money as a tool to build a life you have never seen your family experience. Book a sales call.

 

I cannot wait to be part of your journey!

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ABOUT AUTHOR
Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
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