George Kamel: Do These 7 Things To Be Financially Healthy
Written by
Ashley Donohoe
Edited by
Jenna Klaverweiden
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The Financial Health Pulse 2024 U.S. Trends Report showed that 70% of respondents were considered financially unhealthy, with many reporting issues building their savings, tackling debt and controlling spending.
If you’ve found yourself in that group, you might often stress over money and feel like you can’t get ahead or make progress toward financial goals. However, making some sacrifices and changing how you manage your money can lead you to a better financial situation.
In a recent YouTube video, money expert George Kamel suggested doing these seven things to become financially healthy.
Pay Attention to Your Money
“Financially healthy people are very aware of their finances because they create a budget, they track their expenses regularly, they check their accounts and they make adjustments as the month goes on,” Kamel said.
If you’re worried about discovering something unpleasant, you might hesitate to look at your money. But those unpaid bills, high balances and other problems will remain. Paying attention and being active with your finances will keep you informed and more accountable.
Don’t Do Finances Alone
Handling your finances alone can cause stress and lead to decisions made out of panic or lack of information. Kamel explained that financially healthy people partner with financial advisors and other supportive people who can help them make better money moves and succeed.
He also talked about how spouses should communicate openly about money and share bank accounts, budgets and decisions. While separating your finances might seem appealing for privacy, it can make managing your money messier and lead to arguments.
Be Intentional With Purchases
Impulse buying is a common habit that hurts your financial health. In fact, as reported by Ramsey Solutions, Americans on average spend $150 per month on impulse buys.
Working on avoiding purchases outside your budget is smart. Kamel discussed focusing on meaningful purchases, which can still include fun stuff, and following the popular 24-hour rule. “If something costs over a certain amount, you decide to take a day to think about it and see if it still feels like a good idea when you’re not riding the dopamine high of adding to cart,” he said.
Other ways to be more intentional with purchases include having a sinking fund, removing payment details from shopping sites and using physical money.
Balance Spending, Saving and Giving
It might seem surprising that saving or giving too much can lead to poor financial health just like overspending. Kamel advised keeping these three things balanced so you don’t have to file for bankruptcy or miss out on life.
His recommended strategy involves giving 10% of your earnings, and once you’ve secured an emergency fund and paid off debt, investing 15% for your retirement. The rest can go toward intentional spending and other goals.
Make Interest Work for You
According to Kamel, consumer debt is a big roadblock to financial health since it comes with the punishment of paying interest, so you should pay it off quickly.
“The only exception I’ll let slide is a mortgage, and even then, only if you stick to a 15-year fixed-rate loan and pay it off as early as you can to minimize the interest paid,” he said.
You should then focus on earning a return by investing and letting compounding maximize your untouched money’s growth over time. Consider that if you invested $15,000 at 7% and added nothing else, you’d have about $30,000 in 10 years, $58,000 in 20 years and $114,000 in 30 years.
Protect the Wealth You’re Building
Since one bad event could ruin your financial health, Kamel advised having a three- to six-month emergency fund. That way, unexpected expenses will be more like inconveniences rather than disasters.
Insurance policies also provide important protection for your wealth. Kamel suggested getting term life insurance coverage worth 10 to 12 times your earnings in addition to sufficient car and home insurance for liability protection.
Ignore What Others Think
“Financially healthy people don’t care what others think. They have risen above the comparison game, and they focus on what they can do with what they have,” Kamel said.
Focusing on others can lead you to take poor money advice, overspend to impress and stray from your goals. According to a LendingTree survey, 51% of Americans admitted to overspending to impress someone.
Keep your eyes on improving your financial health and be careful who influences you.
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