In general terms, we could define Financial Fitness means owning the money you need, when you need it. A more detailed explanation would comprise of living within your means, being debt free, and to have enough savings to face any ill-fated financial emergencies.
Are you the one who always waits for your salary to come in order to pay-off your expenditures? Have you been missing on your credit card repayments lately? Do you find yourself running out of cash more often than ever? Do you worry about not being able to retire peacefully someday given your financial position?
If you have been encountering concerns like these, you may have to do something immediately to put your financial house in order. Getting financially fit is a practice; it starts from acknowledging the fact that there is a problem which needs to be deciphered. The first initiative you could take on your road to financial fitness is by figuring out where you currently stand. It may sound simple to you, but this is a core step that remains a formidable burden to many. Try following these steps to start your journey towards achieving your financial goal:
Take control of your finances
Once you identify what you want to financially achieve, you need to glance at how you would manage your money. How much do you save on monthly basis out of your income? How much of your expenses are valid? Take a step towards suspending some discretionary expenses by turning them into your savings.
Cultivate a habit and discipline of saving
To start with something, you can begin slowly by saving a small portion of your income and eventually increase it after you have adjusted your lifestyle to your spending pattern. If you feel your savings are not enough, may be you can opt for another source of income to boost it. Once you develop the habit of saving regularly, you will be able to mount up a substantial savings fund at one point of time. Moreover, you need to invest that money in order to let it grow, by keeping it in the savings account will be of no help. But before you invest that money, remember to keep aside at least three months of your expenses aside as an emergency fund out of your savings.
Get someone to monitor your finances
This is an important step in order to constantly remind your being accountable to your promises. You may hire a trustable financial advisor/planner to support you. Preferably, you could list down your financial goals and accordingly develop a financial strategy plan to implement the same.
Most individuals focus on their fitness to live longer. And the longer we endure, the more imperative finances become – particularly when it comes to retirement planning. So as you progress with your physical fitness, consider striding on your financial plan too. Starting with something is almost half the battle won, start slow and before you know it; you’ll build a financially fit life!