How to improve your financial wellbeing

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Financial well-being is all about how people feel about money and how their finances impact their overall health and well-being. Now many of us can relate to the fact that money worries can feel very draining. Life requires money on a daily basis, and when it feels like you don’t have enough to sort out your necessities, it can lead to all sorts of physical and mental health issues. This is why it is so important to focus on financial well-being before a money crisis crops up.

How to improve your financial wellbeing picture

There is currently a cost of living crisis in many parts of the world, and it is now even more important to stay on top of financial obligations before it becomes an issue. It is super easy to find yourself living paycheck to paycheck, this is why it is important to pay attention to your finances.

How to improve your financial wellbeing

I am not a financial adviser but I have lived experience of dealing with financial worries, and that is why you are reading this post. If you are struggling with financial issues, here are a few ideas that may help you to improve your financial well-being:

Have multiple sources of income

Regardless of how good your salary is, it is always a great idea to have multiple sources of income, especially in this current economic climate. You can never have too many sources of income. Multiple sources of income would do wonders for your financial well-being and would enable create more wealth.

Get life insurance with no medical exam

If you don’t have life insurance in place, it is always a good idea to set one up. There are various plans available for different needs. Nowadays, it is even possible to get life insurance with no medical exam. However, this is not guaranteed. It is usually determined on a case-by-case basis, so do shop around for the best life insurance plan for your needs. Your financial well-being will thank you for this smart financial move.

How to improve your financial wellbeing picture

Sort out your pension

It may not be possible to earn income from multiple sources forever. Therefore, having a pension is important. Many freelancers may underestimate the importance of having a pension and may overlook setting up, but this should really be at the top of the list. There are various pension packages available so there are plenty of options to suit different budgets and requirements.

Grow your savings

Having some money saved up is important. Unforeseen circumstances may lead to a job loss for example Having some form of savings would in situations like that. Having savings also means you don’t have to worry too much about money, and this is great for your financial well-being. A few hundred pounds saved up every month would do wonders for your financial future and would improve your relationship with money.

I hope you find these tips useful and I hope they get you thinking about how you can improve your financial well-being and pave the way to financial freedom.

 

 

 

 

 

How to protect your money as a high earner

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Financial security is what almost everyone strives towards.

For high earners it is of particular importance — to try to protect the money they are earning — as there is more to keep safe.

But, how exactly can we achieve this?

 

How to protect your money as a high earner picture

 

If you want to make the most of your assets, take a look at three of our top tips:

 

  1. Careful budgeting

Some high earners feel that they don’t need to budget. Frugality, after all, has long been associated with people earning a low income.

However, budgeting can benefit everyone — however much they earn. Monitor your money, and you’ll be less likely to face unexpected shortfalls in the future.

By creating a weekly or monthly cash flow on a simple spreadsheet, you can plan your outgoings and lifestyle in advance. Better still, carry your cash flow with you as an uploaded document on your phone or tablet, and you can look at it whenever you feel the urge to overspend.

You don’t just stand to protect your assets; you could become more confident in financial handling, too.

 

  1. Contingency funds

Budgeting isn’t just useful — it’s essential. If you put aside a certain amount of money each month, you can be prepared for any financial situation, including emergencies and changes of circumstance.

Though nobody wants to face a costly surprise, they can occur at any time. Building a contingency fund means you will be able to deal with it much better.

It could be particularly helpful if you need to take unpaid leave from work, for example. That way, you won’t have to worry about covering bills and maintaining your usual lifestyle during that period.

Equally, a fund may come in handy if you ever face redundancy. You’ll then have enough money to tide you over while you secure new employment.

Prepare well, and you can always remain financially secure.

 

  1. Pension plan

You’ll no doubt know the value that a pension plan can offer. As a high earner, you will have garnered a state pension through national insurance contributions as well as building a private or corporate pension along the way, too.

At state pension age (currently 65), Brits have the opportunity to either claim or defer their acquired sum. A deferred pension, for example, increases by a small amount, once its owner has retired. A private pension can be drawn earlier – usually around the age of 55.

Although you may be a long way of retirement age now, it’s useful to plan ahead and decide on the best option for you long-term. You can then start to save effectively. You could always consult a financial adviser to work out the best route for your retirement.

You work hard for your income, so it’s only right that you want to protect it. Follow the right steps, and you can secure your finances, both now and for the future.

3 Finance Tips for the Self-Employed

Being self-employed is amazing. It is one of the best things I have ever done. I really can’t imagine working for anyone ever again. It feels liberating to be able to dictate the pace in which I work. And being able to work from home whilst care for my growing kids is a blessing. I am super thankful everyday for this amazing life I have been blessed with.

 

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Having said that, managing the finances can be a little tricky when you are self-employed. Especially when you are dealing with clients that never pay your invoices on time. I have had to put on my accountant hat to keep my business thriving. For those who do not know, I have a degree in Accounting (graduated university in 2006) but only practised for 1 year. The story surrounding that is a whole new blog post for another day.

Here are some finance tips I have picked up in my self-employment journey.

 

Be Careful with Credit

As a self-employed person, you need to be very careful with credit, especially credit cards. You may find it super easy to shop on your credit cards, especially when you are dealing with late payments and need to survive. If you must get some kind of credit to survive, make sure you understand the payment terms and don’t get carried away with spending money that isn’t yours.

If you have to deal with unforeseen circumstances and need quick money, a company like Cash Lady could come in handy. This company helps customers to find short-term finance solutions. So they are good for when your boiler or car break down, or when you need money quickly for urgent home improvements.

 

Keep Records

I am always on top of my records. Leaving it all until the end of the tax year will stress the life out of me. So I make a note of money coming in and going out.

Sending invoices is a great way to keep track of your money. I always send out an invoice for every project I work on. Even if the client does not request one. I need it for my books, so I get invoices sent out for my records.

 

Claim the Expenses

When filing my tax return, I make sure I claim every expense. This advice also links back to the keeping records tip. I always keep track of every expense, all year round. This makes it easier for me to claim the right amount of expenses. If you are not sure what you could claim as an expense, here is a detailed list of all expenses the self-employed are allowed to claim.

 

I hope you find these finance tips useful. If you have any finance tips for the self-employed, please share in the comments section below.

 

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