Personal Finance Options

Personal Finance And Health – Build Financial Independence

You wouldn’t think personal finance and health would be connected. But the truth is a poor financial situation can dramatically affect your health. The worse your financial situation the higher your stress levels. It’s no fun constantly worrying about paying bills or putting food on the table.

Are you swimming in debt? Do you have no money in savings? If this isn’t your situation you’re uncommon in America. The average American has around $6,300 dollars in credit card debt and about $32,000 in student loan debt. And most Americans also have little to no savings.

Financial Stress Is Still Stress

Cardiovascular disease is the leading cause of death in America and chronic stress is a major contributor. Elevated stress levels raise your heart rate and blood pressure as well as increase muscle tension. You know that chronic pain you’ve been dealing with? An empty bank account isn’t helping get rid of it.

Getting your financial house in order can do a lot to relieve your over stressed life. It also offers other benefits. Want to quit that job you dread going to? Getting out of debt and building a financial safety net can make that possible.

Maybe you want to relocate. It’s a lot easier to uproot your life with fewer monthly obligations. Also the same amount of savings goes a lot farther when you have fewer bills.

How To Find Financial Independence

There are some steps you can take to create your financial independence. Whatever situation you’re in, you will never achieve financial independence if you don’t stop spending money you don’t have! Stop spending money you don’t have this second.

Step one is to establish an emergency fund. You should have somewhere between $1,000 – $2,000 set aside to handle unforeseen expenses. This money is only to be used for emergencies. Otherwise pretend it doesn’t exist.

Next you need to get out of debt. Debt is a boat anchor that is dragging you down. You will need to establish a budget and a plan and make sacrifices, but I promise it will be worth it. The financial discipline you establish during this process will teach you the skills you need to build a healthy relationship with your money.

And last you should save 6-12 months of living expenses. This ensures that something like a job loss won’t derail your entire life. This is even more important if you have a family. If you’re one paycheck away from bankruptcy, you’re barely treading water.

This was the process I used to completely overhaul my life and it has been the best thing I have ever done for myself.

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