Budgeting is a great start for paying off debt.

How Does Budgeting Improve Your Life?

Here are some points that outline how budgeting can improve your life.

A budget is a guide. It tells you whether you’re going in the direction you intend to, financially. You may have goals and dreams. However, it is important to set up guidelines for reaching them and you measure the progress. Failing to do so will send you in the wrong direction. Can you imagine the government or a major corporation operating without a budget? No, and neither should you.

A good plan lets you control your money instead of your money controlling you. It will tell you if you’re living within your means. Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills. The use of credit cards has made this much less obvious. The accumulation of too much credit card debt can hinder the budgeting process.

How Else Can a It Help You?

• A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.
• Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you don’t even remember buying.
• A budget helps your entire family focus on common goals. It helps you prepare for emergencies or large or unanticipated expenses that might otherwise knock you for a loop financially.   A good plan is not just a spending plan; it’s a communication tool. Done right, a budget can bring the two of you closer together as you identify and work towards common goals. It can also be a tool to reduce arguments about money.
• A budget reveals areas where you’re spending too much money so you can refocus on your most important goals and it can keep you out of debt or help you get out of debt.
• A budget actually creates extra money for you to use on things that matter to you and essentially helps you sleep better at night because you don’t lie awake worrying about how you’re going to make ends meet.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Health and wealth goes hand in hand. Integrate the two things for a better living situation

How Can I balance my Health and Wealth?

Firstly, let’s see why and how health and wealth is related. On the surface, good health can often lead to reduced healthcare costs. This is a major factor when it comes to the importance of balancing health and wealth.  The underlying relationship  is that good health can mean increased energy levels for productivity, and ultimately, a more active pursuit of financial goals. Conversely, financial stability can reduce stress and allow for investment in health through better nutrition, fitness memberships, and preventive care. Although on the surface you may not think good health is related to healthy wealth it is in fact a crucial aspect in life.

How Can I Invest in Good Health and Wealth?

Setting Integrated Goals

Conceptually goal setting for anything needs to follow the same structure. Your health goal can be to train to run a marathon while your wealth goal can be saving a certain amount for retirement. Both these goals need structure.  Make sure they are S.M.A.R.T! Your  goals need to be Specific, Measurable, Achievable, Relevant, and Time-bound. This framework can apply as much to saving for an emergency fund as it can to losing weight or increasing your cardio fitness. Working towards a health goal can result in better performance of your wealth goal.

Budgeting for Health

Include health-related expenses in your budget as an investment, not a cost. This includes gym memberships, healthy meal plans, and wellness programs. Depending on your life situation and your credit card debt situation make smart choices. Use free facilities if you  are living in apartment complexes that offer these services, pair up with a friend who can get you through a walk or a jog every morning. Use health savings accounts (HSAs) or flexible spending accounts (FSAs) to set aside pre-tax dollars for medical expenses, which can also be used for preventative wellness programs. Keep an eye on your insurance benefits. Make use of the free physicals, dental check ups provided by your health insurance to ensure you maintain your health and avoid high health care bills later.

Financial Fitness Programs

Take advantage of employer-sponsored financial wellness programs that offer resources and incentives for saving money and improving financial literacy. If your employer offers a 401(k) match, ensure you’re contributing enough to get the full match. It’s like a guaranteed return on your investment, which can support your health goals in the long term.

Fitness as a Financial Metaphor

Take smaller steps and make incremental progress. Just as you can’t expect to run a marathon without training, financial goals are reached through consistent, incremental steps. Saving a small amount each month can lead to a substantial nest egg over time. Diversifying your workouts can lead to better overall fitness, much like diversifying your investment portfolio can lead to better financial health.

Technology Integration

Use fitness trackers to monitor your progress. Many devices now also allow you to track your spending and savings, giving you a real-time view of both your physical and financial health. The growth in social media and content creation also opens up your possibilities to invest in your health without spending a fortune There are ample free resources that you can look at to craft your own health and wellness journey. Similarly, there are money management tools like CreditU that can help you adapt to a healthier financial journey.

Health Challenges for Financial Benefits

Participate in workplace health challenges that can have financial rewards, such as reduced health insurance premiums or contributions to HSAs/FSAs. Train for and participate in charity runs or cycling events that often have a dual benefit of raising money for good causes and improving your physical fitness.

Balancing Costs with Lifestyle

Opt in for frugal fitness.  Not all fitness expenses have to break the bank. Look for free workout videos, community classes, or outdoor activities that provide free or low-cost fitness opportunities. Practice mindful spending in both health and financial decisions. Avoid impulse purchases, whether it’s the latest fitness gadget or an item you don’t need.

Bottom Line…

By integrating your health and wealth goals, you create a powerful synergy that can lead to a happier, healthier, and more secure life. Remember, both journeys are marathons, not sprints. Progress may be slow, but with persistence, the results can be profoundly rewarding. Stay committed to your integrated plan in 2024, and you’ll be on your way to achieving both your fitness and financial milestones.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Avoid credit card debt during the holidays for a smoother new year.

Make a List

You don’t have to make a naughty or nice list, but you should make a list of which family members and friends you’re getting gifts for and how much you plan to spend on each. It’s important that you have a realistic budget when you create this list so you don’t overspend. Sticking to a list and a budget is the best path to avoiding credit card debt.

Start Saving Before the Holidays

Ideally, you should start saving for the holiday season in January if possible. That gives you almost an entire year to save up. If you save $50 a year from January to December, you’ll have $600 saved for holiday expenses! Even if you haven’t been saving over the course of the last year, it’s not too late. Cut back on expenses like takeout, entertainment, or shopping for yourself. Use more coupons when you go grocery shopping. Every little bit adds up!

Start a Side Hustle

Starting a side hustle is a great way to avoid credit card debt during the holidays. The extra cash from your side hustle means you won’t have to resort to using credit cards if you didn’t start saving early enough this year. We have a list of side hustle ideas that are safe and profitable during COVID-19!

Pay Your Credit Card Bill in Full

Normally, we advise consumers to avoid using credit cards during the holiday season and use cash only. This works great if you can shop in person at a brick-and-mortar store. Unfortunately, because of COVID-19, it is not safe to be at a crowded shopping mall or department store. That means most of us will probably be doing our holiday shopping online this year using credit cards. However, treat your credit card like cash. Give yourself a set amount that you can spend, and when you’ve spent that amount, you’re done shopping. When you get your credit card bill, pay it in full so you can avoid accumulating credit card debt.

Skip Traveling This Year

Traveling is expensive, and this year, it’s not advisable anyway. Rather than spend money on plane tickets or gas for a road trip to see family, save that money for later. Put the money you would have spent on holiday travel into your emergency fund instead. If 2020 has taught us anything, it’s that having an emergency fund is the best way to avoid credit card debt in times of crisis!

If you struggle with credit card debt, ACCC can help. Sign up for a free credit counseling session today.