{"id":4641,"date":"2021-11-02T14:02:01","date_gmt":"2021-11-02T06:02:01","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=4641"},"modified":"2024-08-01T14:13:45","modified_gmt":"2024-08-01T06:13:45","slug":"your-financial-wellness-roadmap-6-steps-to-make-your-money-grow","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/your-financial-wellness-roadmap-6-steps-to-make-your-money-grow\/","title":{"rendered":"Your Financial Wellness Roadmap: 6 Steps To Make Your Money Grow"},"content":{"rendered":"\n
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When you think about being well, you might think about having a good night\u2019s sleep, eating more vegetables, meditating, or committing to an exercise plan. But there\u2019s one aspect of wellness that doesn\u2019t quite come to mind naturally: financial wellness.<\/p>\n\n\n\n

Think about it. When you\u2019re financially stressed – living paycheck to paycheck; staying in a bad relationship (work or otherwise) because you cannot afford to leave; or dealing with a mountain of debt – your physical and emotional well-being gets compromised too.<\/p>\n\n\n\n

Financial wellness is the foundation for your overall well-being. And like most important things, it\u2019s a journey not an end destination. <\/p>\n\n\n\n

If you\u2019re ready to build a strong financial foundation<\/a>, look no further.<\/p>\n\n\n\n

1: Start a budget<\/strong><\/h2>\n\n\n\n

Having a budget is the first step towards financial wellness. It acts as a guide for your money, and helps you understand how you\u2019re saving and spending it.<\/p>\n\n\n\n

Many financial experts recommend trying out the 50\/30\/20 plan. It involves saving and investing 20% of your income every month, setting aside 50% for essentials like utilities, food and transport, and spending 30% for discretionary items like dining and entertainment.<\/p>\n\n\n\n

If you find it hard to stick to a budget, the best way is to automate your savings. When your paycheck comes in each month, set up an automatic recurring transfer to divert at least 20% of it into a separate account.\u00a0<\/p>\n\n\n\n

2: Get covered and pay down high-interest debt<\/strong><\/h2>\n\n\n\n

Being financially well also includes making sure you have enough term life insurance<\/a>, especially if you have young children. Depending on your family\u2019s needs, you may also want to add on health insurance or critical illness coverage.<\/p>\n\n\n\n

If you have high-interest debt (more than 5% monthly interest), like credit card bills, tackle them first. Try to pay more than the minimum required payments and clear them as soon as you can. The longer you take, the more in interest you\u2019re paying – money that you could be spending on other things that matter to you.<\/p>\n\n\n\n

3: Set up an emergency fund<\/strong><\/h2>\n\n\n\n
\"Financial<\/a><\/figure>\n\n\n\n

Life is unpredictable. As such, financial wellness means having an adequate emergency fund. <\/p>\n\n\n\n

How much money to set aside depends on your lifestyle and financial situation. Generally, the rule of thumb is at least three months of living expenses. A larger emergency fund is recommended if you\u2019re facing more uncertainties in your financial life. <\/p>\n\n\n\n

But if you\u2019re financially stable, keeping too much cash in the bank may not be the most effective use of your money, as we\u2019ll cover in the sections below.<\/p>\n\n\n\n

Finally, keep your emergency fund in an account you can withdraw from anytime you need. A cash management portfolio like Syfe Cash+ Guaranteed<\/a> could be a good option. <\/p>\n\n\n\n

4: Think about your goals<\/strong><\/h2>\n\n\n\n
\"Financial<\/a><\/figure>\n\n\n\n

What should your financial wellness roadmap<\/a> help you to achieve? Do you want to save for a wedding? Send your child overseas for further studies? Retire at age 55?<\/p>\n\n\n\n

Make a list of your goals and try to be as specific as you can. For example, \u201cSave $40,000 in five years for a home down payment.\u201d<\/p>\n\n\n\n

Next, sort them into short- and long-term goals. Short term goals typically take two years or less to accomplish, such as saving up for a trip to Europe next year.<\/p>\n\n\n\n

Medium- to long-term goals could take three years or more. Simply saving more money might not be enough. Instead, you\u2019ll be able to achieve them more efficiently through investing.<\/p>\n\n\n\n

5. Invest for your goals<\/strong><\/h2>\n\n\n\n

Keeping too much cash in the bank can be bad for your wealth.<\/p>\n\n\n\n

When you invest, you’re growing your money and giving yourself the chance to make more in the long run. <\/p>\n\n\n\n

One simple investing approach to consider is Core-Satellite.<\/a><\/p>\n\n\n\n

\"Core<\/a><\/figure>\n\n\n\n

In general, a good core investment should be well-diversified across stocks, bonds and commodities, with exposure to different sectors and geographies.<\/p>\n\n\n\n

Satellites complement your core, and offer targeted exposures to certain sectors or themes <\/a>you\u2019re optimistic about.<\/p>\n\n\n\n

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