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7 Steps To Financial Health

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Seven steps to a stronger financial future

Want to get on the path to a solid financial future? These seven practical steps — from setting goals to guarding your credit — can put you light-years ahead of most Americans.

Because Billshark wants to see young adults get started on the path to a solid financial future, we want to present these seven steps you can take to ensure your financial health.

1 Know Where You’re Going

If you don’t have financial goals, how will you know how to achieve them? Do you want children? How many? Do you want to own a home? Travel often? Retire early? Sit down and ask yourself where you want to be in five, ten, twenty, forty years. Take your time and don’t rush.

2 Budget, Budget, Budget

Once you know how you want your money to work for you, then is the time to create a plan for how to make that happen. Figure out your current living expenses against your financial goals, and notice gaps. Do you need a better job? A side gig? Can you find places to economize?

Then track every penny you spend, either in a notebook or using an online tool. If you do this faithfully, you’ll never have to ask that perennial question, “Where did all my money go?”

3 Create a Safety Net

We’ve said it before, but it’s crucial. You must have at least $1,000 in ready cash available for emergencies. Otherwise, you’ll go into debt to get your car repaired or your refrigerator replaced. Keep this money available in a highly liquid savings account or money market account and don’t use it for anything other than an emergency.

4 Save, Save, Save

Once you have an emergency fund set aside, you’ll need to savings for:

  • a financial cushion in case you lose your job: This should be six months’ to a year’s worth of living expenses;
  • a down payment on a house: To get the best interest rate, you’ll need a 20 percent down payment;
  • medical emergencies: You’ll need enough to at least cover your annual deductible;
  • retirement: It may be decades away, but it’ll be here before you know it. Planning for it now allows you to take advantage of the miracle of compound interest.

5 Learn How to Invest

A sound investment plan allows you to let your money work for you. Read, study, take local or online courses to understand the fundamentals of investing.

6 Avoid Debt Like the Plague

When you owe other people money, it’s a constant millstone around your neck. In addition, whatever interest you pay on debt—even so-called “good debt” like a student loan or mortgage—is money you could be using to pay yourself to help solidify your financial future.

If you must have debt, say in the form of a home or car loan, get the lowest interest rate you can, for the shortest period possible. And never go into debt for such luxuries as vacations or weddings.

7 Watch Your Credit Rating

A good credit rating will help you obtain favorable terms on loans, and is often necessary for renting an apartment, keeping insurance rates low, and even landing a good job. Check it annually for free at annualcreditreport.com.

If you follow these seven steps, you’ll be light-years ahead of most Americans in making your financial dreams come true.

Billshark is famous for our unique ability to save people money. We been featured on NBC’s Today show and NBC Nightly News, CBS News, Fox 35, and in The Miami Herald, so you know we offer something no one else does: a real chance to save you hundreds or even thousands of dollars on your bills at no risk to you. So contact us today to see how much you can save.

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Frequently Asked Questions

How much should I keep in an emergency safety net?

You should have at least $1,000 in ready cash available for emergencies, so you don't go into debt to repair your car or replace your refrigerator. Keep this money in a highly liquid savings account or money market account, and don't use it for anything other than a genuine emergency.

How much should I save beyond my emergency fund?

Once your emergency fund is set, save a financial cushion of six months' to a year's worth of living expenses in case you lose your job, a 20 percent down payment to get the best mortgage rate, enough to cover your annual medical deductible, and money for retirement so you can take advantage of compound interest.

How should I handle debt to stay financially healthy?

Avoid debt like the plague. Interest you pay, even on so-called good debt like a student loan or mortgage, is money you could use to build your future. If you must borrow, such as for a home or car, get the lowest interest rate for the shortest period possible, and never go into debt for luxuries like vacations or weddings.

Why does my credit rating matter so much?

A good credit rating helps you obtain favorable terms on loans and is often necessary for renting an apartment, keeping insurance rates low, and even landing a good job. Check your credit annually for free at annualcreditreport.com so you can catch problems early and protect your standing.

How do I start budgeting effectively?

First decide how you want your money to work for you, then create a plan to make it happen. Compare your current living expenses against your financial goals and notice the gaps. Then track every penny you spend, in a notebook or an online tool, so you never have to ask, "Where did all my money go?"

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7 Steps To Financial Health page context

7 Steps To Financial Health is a Billshark resource with information and navigation relevant to recurring bills, consumer choices, and savings decisions.

Follow 7 steps to financial health: set goals, budget, build a safety net, save, invest, avoid debt, and watch your credit rating. Start building wealth.

Visitors can use this page to review Billshark information and continue to the route that best matches their savings, support, or account needs.

Billshark publishes this information to help visitors understand monthly expenses, provider choices, and practical next steps.

The page connects visitors with related Billshark resources when they need additional detail or a more specific next step.

Want to get on the path to a solid financial future?.

Because Billshark wants to see young adults get started on the path to a solid financial future, we want to present these seven steps you can take to ensure your financial health .

If you don’t have financial goals, how will you know how to achieve them?.

Once you know how you want your money to work for you, then is the time to create a plan for how to make that happen.

Then track every penny you spend, either in a notebook or using an online tool.

We’ve said it before, but it’s crucial.

Once you have an emergency fund set aside, you’ll need to savings for.

A sound investment plan allows you to let your money work for you.

When you owe other people money, it’s a constant millstone around your neck.

If you must have debt, say in the form of a home or car loan, get the lowest interest rate you can, for the shortest period possible.

A good credit rating will help you obtain favorable terms on loans, and is often necessary for renting an apartment, keeping insurance rates low, and even landing a good job.

If you follow these seven steps, you’ll be light-years ahead of most Americans in making your financial dreams come true.

Billshark is famous for our unique ability to save people money.

You should have at least $1,000 in ready cash available for emergencies, so you don't go into debt to repair your car or replace your refrigerator.

Once your emergency fund is set.

Avoid debt like the plague.

A good credit rating helps you obtain favorable terms on loans and is often necessary for renting an apartment, keeping insurance rates low, and even landing a good job.

First decide how you want your money to work for you, then create a plan to make it happen.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 Know Where You’re Going.

2 Budget, Budget, Budget.

3 Create a Safety Net.

5 Learn How to Invest.

6 Avoid Debt Like the Plague.

7 Watch Your Credit Rating.

Frequently Asked Questions.

How much should I keep in an emergency safety net?.

How much should I save beyond my emergency fund?.

How should I handle debt to stay financially healthy?.

Why does my credit rating matter so much?.

How do I start budgeting effectively?.

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