A few articles ago I discussed the issues of finances or the challenges with finances that potentially cause stress. The article was actually about what stress does to the body. It isn’t pretty! Stress steals your health and wellness.

Here are some of those tips;

1) You need an emergency fund, because emergencies happen. They happen on a regular basis and the reality is they really aren’t emergencies because we should expect that at some point in time “stuff” will break down and need repairs or replacement. You need to put a minimum of $1000.00 away asap. Think about this, if a major appliance decides it’s time to stop working how will you replace it? If you don’t have an emergency fund you might be tempted to put that appliance on a credit card which will then add interest to the initial cost of the appliance. This becomes a viscous financial cycle.

2) Next step is to have $5000.00 as an emergency plan. Think about how great it would feel if you had that money put away. Ready for the next “emergency”, maybe the emergency won’t seem like such an emergency.

3) Keep track of every penny that you spend during the month. From this tracking you can set a budget. I know a budget can be a scary thing but it is a very necessary aspect of a healthy financial life. You have to know what you are spending money on in every area of your life. You might be surprised at how much you spend in the different areas.

4) Now it is time to set some goals. Do you want to save money? What about paying debt off? Do you have plans for your children to attended post secondary school? How will you save for your retirement? You need a plan. Do you know some people spend more time planning a vacation then they do their financial plan.

5) Once you have your goals with timelines in place, you now have to set your budget for each area and stick to it. If you decide $400 a month is your grocery budget then that’s it for the month. You have to learn to live on that amount and that goes for each area of your budget. Don’t forget about gifts, entertainment, clothes, sports events, insurances, vacations, building your emergency plan to 3 to 6 months of your monthly expenses and whatever other needs your family might have. Setting your budget will take months to become a habit and you might have to tweak a few things along the way.

6) Once your budget is flowing you should be paying down debt and saving. This will take time. The idea is to save money so you won’t have debt again.

Taking the time to put these steps in place can save frustration and stress within a family. No matter how old or how young, everyone should have a financial plan. Not just a plan to someday have a plan, but actually have a plan in place. Your stress levels will decrease and your health and wellness with increase.

Diane Elms Homeopath, D.H.M.H.S., CCI, CCII, Specializing in Drugless Cancer Care, 2006 Iridologist of the Year, if you have any health related questions contact diane@choicesforhealthandharmony.com or 905 768 0848.

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