Financial Wellness Beyond Homeownership

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Owning a home isn’t the only way you can achieve financial wellness, there are plenty of options outside of homeownership to reach your financial goals. Any financial advisor would advise you not to put all of your eggs in one basket. Markets can be volatile and relying on only one can be disastrous.

Whether you invest, save, or plan, controlling your financial security should be on everyone’s resolution list in 2024. Here are some ways you can balance your finances and improve your financial wellness.

Financial Wellness Beyond Homeownership
Develop Sustainable Income

One crucial factor to sustain financial wellness is generating the income you need to support your short term and long term goals. Working a job that financially supports you and brings in consistent income greatly helps your ability to save and increases your investing power.

One time cash opportunities such as gambling or the lottery are not sustainable, nor something you can count on. It’s easier to plan around your financial limitations when you know what to expect every pay period.

Plan For Your Future

Having an idea of what your future goals are going to be is vital for how you handle your money. Are kids in your future? Plan for it. Do you wanna travel Europe? Plan on what you’ll be spending. This helps you prioritize what you find most important and plan accordingly. These savings should not be used for bills or impulse buys, and should be seen as an emergency fund for potential financial setbacks.

Financial advisors recommend putting at least 10% of your paycheck into your savings but 20% is preferred.

Live Within Your Means

This boils down to not spending more than what you make. Understand what you can spend and prioritize what you need to spend your hard earned cash on. If you can, have your rent/mortgage payment be no more than 30% of your monthly income. A financial advisor can help you determine what you can afford for rent and other living expenses as well as what you need to cut back on to save more money!

Review Your Subscriptions

If you’re looking for more stability with your finances, you should first start by reviewing your monthly subscriptions. Streaming platforms are affordable alternatives to a cable subscription, but juggling multiple subscriptions can start to add up quickly. By reviewing your subscriptions, you can start to cut services you don’t use, and set that money aside for other expenditures.

Additionally, you should use this time to review larger expenses like insurance and car payments. It may be time to find a health insurance plan with better rates or refinance your car and lower your monthly payment!

Pay Off Credit Card Debt

If you’re drowning in credit card debt it might be time to prioritize that and pay it off. Hold off on using that card again until it’s been paid off. Adding to your debt total makes paying it off more difficult to accomplish and the accruing interest has you paying more in the long run. While this can be challenging, starting a budget and cutting your expenses can make this much more attainable and can be paid off in no time!

Start Budgeting

Starting a budget makes it easier to track your spending and gives you a better feel for where your money is going. Follow the 50/30/20 rule, this says that 50% of your income goes to essentials, 30% goes to personal purchases, and 20% goes into your savings and debt repayments. You can adjust this based on your expenses and living conditions, but staying within this range will help you achieve financial wellness!

Financial wellness has more to it than just owning a home or having a high paying job. It is often something you need to work at and plan towards. By implementing healthy planning, budgeting, and investing strategies, you can put yourself in the best situation to maximize your financial wellbeing!

Rachel Caple

Rachel Caple has more than 18 years of experience in mortgage banking industry. Residing in Castle Rock, CO. Rachel spends her spare time with her husband, Sean and 4 boys. She also enjoys traveling, attending hockey games, and playing golf (or attempting to).

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