In the latest episode of “Better Financial Health,” Stacey Hyde from Envision Financial Planning delves into practical strategies for transforming your financial health through simplified budgeting and smart saving tips. This episode is packed with valuable insights on how to allocate your income effectively to achieve financial stability and meet your future aspirations.
Ever wondered how a small shift in your approach to budgeting can revolutionize your financial health? Stacey Hyde promises to reveal how dedicating just 10% of your income to retirement savings can pave the way to financial stability and future aspirations. By breaking down your monthly income and expenses, including essentials like rent, utilities, and debt payments, as well as discretionary spending on dining and entertainment, she identifies strategies that ensure you have money left over. This leftover money can be allocated to dreams like buying a house, traveling, or purchasing a car.
Simplifying the budgeting process is key to long-term success. By setting up a budget annually or during significant life changes and automating your savings, you can avoid the daily grind of financial micromanagement. This system is designed to offer you financial stability without constant oversight, making your money work for you effortlessly. Here’s a deeper dive into the main topics discussed in the episode.
One of the most compelling points Stacey makes is the importance of dedicating a portion of your income to retirement savings. Many people think of budgeting as a restrictive exercise, but Stacey redefines it as a liberating tool that can help you achieve your financial goals. By committing at least 10% of your income to retirement savings, you’re not only securing your future but also creating a buffer that can provide peace of mind. The key is to ensure that this savings process is automated. This way, you’re consistently contributing to your retirement fund without having to think about it, making it less likely that you’ll skip a contribution.
Stacey also breaks down the components of a typical budget, starting with your monthly income. This includes your paycheck, minus any health insurance premiums and taxes. From this net income, you subtract essential expenses such as rent or mortgage payments, utilities, and debt payments like student loans and credit card bills. What’s left is your discretionary income, which can be allocated to non-essential expenses like dining out, entertainment, and hobbies.
The goal is to have money left over after accounting for all these expenses. If you find that you’re running a deficit, Stacey suggests looking for ways to either increase your income or reduce your expenses. This could mean taking on a side hustle, renegotiating your cell phone plan, or cutting back on streaming services. Small changes can add up, making a significant impact on your overall financial health.
Another important aspect Stacey discusses is the importance of setting aside money for future goals. Whether you’re saving for a down payment on a house, planning a vacation, or preparing to buy a new car, having a dedicated savings account for these goals can make them more attainable. By moving any leftover money into a separate savings account, you’re less likely to spend it on day-to-day expenses. Automating these transfers can further simplify the process, ensuring that you’re consistently saving without having to think about it.
Stacey also emphasizes the importance of making wise spending decisions. For instance, while it’s important to have a reliable car, spending excessively on a vehicle can detract from other financial goals. Cars are depreciating assets, meaning their value decreases over time. Instead of spending a large portion of your income on a high-end car, Stacey suggests opting for a more affordable, reliable vehicle. The money saved can then be invested in appreciating assets like savings accounts or investment portfolios, which can grow over time and contribute to your financial stability.
The episode also touches on the psychological aspect of budgeting and saving. By changing the way you think about money, you can transform your financial health. Instead of viewing budgeting as a restrictive practice, Stacey encourages listeners to see it as a tool for achieving financial freedom. This mindset shift can make the process of budgeting and saving more enjoyable and less stressful.
In summary, this episode of “Better Financial Health” with Stacey Hyde offers practical, actionable advice for improving your financial health through simplified budgeting and smart saving strategies. By dedicating a portion of your income to retirement savings, breaking down your monthly expenses, and automating your savings, you can achieve financial stability and meet your future goals. The key is to make these practices a regular part of your financial routine, ensuring that you’re consistently working towards a brighter financial future.
Tune in to the episode to get detailed insights and start your journey towards better financial health today. And don’t forget to leave a review to help more people discover these valuable tips and strategies!
