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This is it – The best financial diet to be in the right financial shape

Do you know what is the biggest con of being financially unhealthy?

Your life is not under your control. You’re not your boss. Creditors dictate your life, and you have to act as per their whims, which drives you to unhappiness.

So your next question must be about how to be financially fit.

The simple answer is, be on the right financial diet.

The right financial diet can help you save money, build wealth, and be on the perfect financial shape. If you’re one of those who want to be in the right financial shape this year, then start following this diet henceforth.

1. Look at your financial statements: Check your bills and financial statements.

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Find out how much you’re paying for the Internet, subscriptions, home loan, insurance, credit card bills, electricity, etc.

Are you paying more than others? Browse online and find out who is offering the best deal. In a competitive market, price and packages change from time to time. So you should always do comparison shopping periodically.

A good package at a competitive price can help you save a lot of money in the long run.

2. Secure your future with insurance:

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Misfortunes can strike you anytime and damage your financial health. Insurance helps you to combat misfortunes with deft hands. For instance, in the event of a fatal accident, an auto insurance policy can help you to repair the car without taking a penny out of your pocket. The insurance company will reimburse you for the damages.

Don’t let your money go down the drain simply because you’re not covered for an emergency. Get yourself covered and secure your future with adequate insurance coverage. Consider buying multiple insurance policies from the same insurer. You might get a lucrative discount on your premiums.

3. Take your career seriously: Your career can help to set a very solid financial foundation during the early years of your life. Be it a job or a business, you should take it seriously. Focus on your job if it’s the only source of your livelihood. Work hard so that you can get a good performance appraisal and a salary hike. If you’re self-employed, then focus on your business. Your main goal is to make as much money as you can.

Once you’re in your thirties, start doing a part-time job. It helps to accelerate your income and increase your financial strength.

4. Diversify your investment portfolio: Good investments can help you to build wealth and strengthen your financial health. Just remember one fact, you won’t be able to build wealth just by living frugally and saving money. You have to invest money at a young age so that you can enjoy compounding returns in the long run.
Consult an investment advisor who can help you create a diversified investment portfolio. An investment advisor can tell you how much you should invest and where. The main goal is to strike a balance between risky and secured investments.

A Good Investment Tip

When it comes to investments, you need to have patience. You can’t expect that you’ll be a millionaire within a day. You may have to wait for several years to enjoy the benefits of good investments.

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5. Don’t buy what you can’t afford: The most important tip to stay financially fit is to buy only what you can afford. A trip to an exotic island may seem too lucrative, but don’t do it if you don’t have sufficient money.

A credit card can help to sponsor your trip.

You can go there within a month. But once you return from the trip, you have to pay off the credit card bill along with the interest. This means you have to pay more.

If you’re sure that you can pay the credit card bill next month, then go ahead and have your dream vacation on an exotic island. But if you aren’t sure of paying the credit card bill, then postpone your trip.

Make it your financial goal and save money each month. Book your tickets once you have enough money to finance the entire trip.

6. Look for solutions to your debt problems: Debts are like extra dollops of butter. When you consume extra dollops of butter in your food regularly, you tend to become fat unless you exercise and burn those calories.

When you rack up debt, you become financially unfit and problems crop up one after another. Your credit score drops, your loan applications are rejected, and your creditors threaten to sue you.

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The best way to get back to the right financial shape is to pay off your debts as soon as you can. Watch out for solutions to your debt problems. Explore each of them to know which one is feasible for you.

If you’re buried in credit card debt, then a credit card debt settlement program or a consolidation program is a feasible option for you. If you have taken out a high-interest payday loan in the past and can’t pay it off, find the best way to get rid of payday loans. The beauty of this debt relief program is that it can help to lower your monthly payments and enable you to save money. To be precise, tons of money.

Wait! I ain’t finished yet…

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The most important point is consistency. You have to stick to the financial diet. If you want to be in good financial shape, then you have to stash money in a savings account every month. This is your emergency fund, which will come handy during the rainy days. You’ll be tempted to not deposit money in the savings account or use the fund for your convenience. But you have to resist the temptation.

If your goal is to be in the perfect financial shape, then pay your bills on time, get packages at competitive prices, pay your tax, buy insurance policies, and build an emergency fund. Consult a financial advisor if you wish to evaluate your progress and make the necessary changes.

Contributing Writer:

PATRICIA SANDERS

Patricia was born and raised in the Bronx, New York. She was a bookseller before shifting to publishing house where she worked at a literary development company, a creative writing website for teens. She lives in New York City and is tall for no reason.