Michael D’Angelo- August 2021
While you may have set goals to get more physically fit, it is also important to consider your financial fitness as well. If your finances are not where you want them to be, or maybe they are in need of a little tune-up, consider the six tips below to get your financial health fit.
1. Trim the Fat
One of the first steps toward a more healthy financial future is spending less. If you take the time to take a hard look at your budget, odds are you can find some excess that you can easily trim off without feeling the pinch. Start with spending items such as clothing, food, and entertainment and see if smart shopping or more date nights at home can help free up some extra money each month. Discipline yourself to follow good savings techniques to reduce your overall spending.
2. Tone Up Your Debt
With easing COVID restrictions, odds are you’ve seen recent increases on your credit card bills. Make it a primary focus to pay off your current debt. “Trimming the fat” on your spending will benefit this for months to come.
3. Whip Your Credit Into Shape
Your credit score can affect you in many aspects of your financial life. Whether you are looking to buy a house, a car, or to take out a loan to start a business, your credit score will be used to determine how much interest you will pay and how likely you are to even get your funds. Unfortunately, many people neglect their score until they need it, and at that point, it can be difficult to improve in time. Keep your credit card balance far from the limits, be sure to make payments on time, and monitor your score for negative marks.
4. Load Up on Savings
Once you have trimmed the fat off your budget, you will want to put some of that into savings. Aside from having more money to allocate to your investment accounts, one thing to start saving for immediately is an emergency fund. Surprise repairs, bills, and layoffs can damage your financial health if you are not prepared for them. Having funds available for these times can lessen the blow and help you stay on top of your bills, so you don't fall behind.
5. Put Retirement Savings in Your Routine
Saving for retirement is critical so that you can retire. Many people do not save enough for their retirement or wait so long that it stresses their budget to meet their goals. Make it a point to focus on your retirement goals and find extra funds that you can put into your account so that it has the necessary time to grow as it should. Find out if your company matches contributions and if so try to put in as close to how much they will match as possible.
6. Start a New Investing Routine
Investing is the quickest way to grow your wealth, but many people are afraid to enter the world of investing because they are afraid of losing their money. Others are under the misconception that you have to invest a lot of money when the truth is you can begin your investment journey with as little as $100. Start small so you can get the hang of it and if you have more money to invest consider meeting with your financial advisor who can help you pick a mix of investments based on your risk tolerance.
By becoming financially fit and setting attainable goals- you can immediately grow your wealth and get started on a secure financial future.