Physical health and “financial health” may be an odd combination but reality tells us some odd things which are necessary for your survival and success. Learn the different ways towards financial health, from budgeting, to saving to everything else on finances straight from financial experts.

• Emergency Funds, Start One, Grow One

No emergency funds? Now is a good time to start. Got emergency funds? Now is good time to make it grow. Saving on emergency funds even if you just allot a small amount is very important. According to Bargaineering.com blogger Jim Wang, ensuring an adequately funded emergency fund is the most important thing someone could do for their financial lives. Due to the high rates of unemployment, financial experts advise people to have an emergency fund that can supply their needs for 6 months, and if you can, stock for a year, especially if your job is in jeopardy.

This move prevents you from liquidating your retirement funds or relying on credit cards. Trying to supply your finances during an emergency with your credit card could lead you to the path of debt. Have an emergency fund, save on it and make sure it is separated from the accounts you use every day.

• Pay Credit Card Debts with Existent Savings

This is the suggestion of Cornell University’s psychology professor Tom Gilovich. Credit card annual percentage rates average about 15%; people with credit cards actually pay more in interest. The solution is to pay off the debts with any savings.

• Allot 10% of your Income for Retirement

10% of your income should be targeted towards retirement, regardless of the amount you are earning. The sooner you get started on this, the more wealth you will build. Let’s say you started at age of 25 and your savings in a tax deferred account totaled at $5000 in a year, and you’ve earned a 6% rate of return, by the time you turn 65 that would already amount to $773, 809. That doesn’t mean to say older workers don’t have the same chance, they still do, they just have to make their retirement plans aggressive. Saving $15,000 per year for 15 years and saving it in a tax deferred account would still give a $349, 139 by the time of retirement.

• Make Sure Mortgages are paid before Retirement

Behavioral Economist at University of Chicago reveals that the terms for mortgages should not exceed the number of years planned for working. After retirement, one’s income is expected to drop, but the cost of living will not, so eliminate monthly mortgages so that the expenses will be adjusted to the drop in income. During this time, health expenses are also expected to rise, when monthly mortgages are eliminated, then the budget could be allotted to more important things such as health.

During this time, loans should be taken in careful consideration. Different kinds of loans (personal loans, text loans, etc.) must be carefully studied.

• Track Where the Money Goes

Another important thing is to track where the money goes, in other words your “spending”. Taking time to record or write where the money is spent gives you a clear picture of where your money goes. This allows you to prioritize and control your budget.

It is a basic idea but in a survey done by the NFCC, it was reported that 20% of the respondents didn’t know how much they spent on housing, entertainment and food. Some experts believe people are afraid to know the areas they need to cut back on; simply because they don’t want to cut back on that area.

The author of this article on finance is Martha Winters, a writer of numerous articles on finance and business. Martha particularly writes on loans such as text loans, personal loans, business loans, etc offering guidance to readers on how they can effectively manage their finances.