Self-care has become such a buzzword on the internet in these past few years. The idea of exerting time and effort to take care of yourself is certainly not a bad one. In my viral ‘20 Ways To Practice Self-Care’ post, I listed several ways in which you can do so, both physically and mentally. Some focus on eating healthier meals and taking more intentional breaks, while others make time to do activities they enjoy – like traveling. But one aspect of wellness I wanted to focus on today is financial wellness.
Thanks to Upgraded Points for sponsoring this blog post
Defining Financial Wellness
What exactly is financial wellness? This term refers to your ability to effectively manage your economic life. This encompasses aspects like spending habits, priorities, financial literacy, the ability to cover emergencies, and plans for the future. The ultimate goal is not to be well-off, but to be able to use one’s finances as a tool to achieve security in life. Establishing and maintaining good credit also contributes to financial wellness – so of course, understanding concepts that are related to this is crucial.
Credit Score and Credit Checks
Your credit score is essentially a number that expresses your creditworthiness. Your credit history, open accounts, existing debt, and repayment habits are all factors that go into your credit score. According to a guide to credit checks by Upgraded Points, credit checks are performed by lenders or creditors when you apply for a line of credit or loan. Moreover, employers can also perform credit and financial checks on their job candidates to determine their financial maturity.
How Financial Wellness Affects You
A Forbes article highlights financial wellness as the third component in holistic health, following physical and mental. However, money is one of the biggest causes of stress for most adults – on the flip side, successful money management generates feelings of control, confidence, and even comfort. Studies have also shown that positive financial habits have more impact on a household’s financial well-being than an increase in income. This shows that it’s hugely a matter of responsibility.
The Best Ways to Look After Your Credit Score
Fortunately, there are many ways to manage your credit. Make it a habit to monitor your debit and credit card transactions, ATM card usage, and other transactions. Ensure that you’re making timely payments for your debt, bills, and outstanding credit. It’s also a good idea to make use of technologies like automatic payments and reminders to avoid late payments. Finally, schedule your financial applications to guarantee that you’re not incurring consecutive hard credit checks, which can significantly lower your credit score.
Keeping Your Credit Score Healthy While Traveling
Traveling is a form of self-care for many. However, it’s hard to keep your credit score in the good to excellent range, especially when you’re going on an extended vacation. But the key to keeping your score healthy while still enjoying all its perks is responsible spending coupled with balance repayments. Yahoo Finance suggests choosing a card with good travel benefits, insurance, and minimal foreign transaction fees. The good news is that most major international providers apply.
Learning More About Financial Wellness
With the internet at our fingertips, there is no end to education. Learning more about financial wellness is a fantastic way to care for yourself – and a great way to make sure the rest of your life is spent in comfort. I’d also like to recommend following financial advisors and looking at other finance content creators to help you acquire more knowledge on credit scores. Of course, the greatest aim of education is action. Make sure you put your learnings into practice.
Final Thoughts
A high credit score is a sign of a good quality of life. It also means that you don’t have to worry about job loss, emergencies, or life changes that might impact your finances suddenly. If your credit score isn’t looking too good, don’t lose hope – after all, everyone is at different points in their journey to financial stability. It’s never too late to work on this aspect of your life using the tips I mentioned above. To read more about careers, finance, travel, lifestyle, and everything under the sun, check out the rest of my blog.
Leave a Reply